Xerox Corp (XRX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 8.28 | 8.46 | 3.92 | 3.70 | 3.95 | |
| DSO | days | 44.10 | 43.14 | 93.05 | 98.74 | 92.47 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.28
= 44.10
The Days of Sales Outstanding (DSO) ratio for Xerox Holdings Corp has shown some variability in recent years. In 2023, the DSO decreased to 94.14 days from 104.67 days in 2022, indicating that the company is collecting its accounts receivable more efficiently compared to the previous year. This may suggest improved management of credit and collections processes.
The significant improvement from 2022 to 2023 is a positive sign as it means the company is converting its sales into cash more quickly, which can improve liquidity and working capital management. However, it is important to note that the DSO was higher in 2021 at 202.21 days, indicating slower collections that year.
Compared to 2020 and 2019, where DSO was 108.79 days and 185.76 days, respectively, the current DSO of 94.14 days in 2023 reflects better efficiency in collecting receivables. Overall, the trend in DSO for Xerox Holdings Corp shows improvement in recent years, suggesting a positive impact on cash flow and operational efficiency.
Peer comparison
Dec 31, 2023