Xerox Corp (XRX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 8.27 | 4.45 | 4.36 | 8.89 | 8.43 | 8.54 | 8.45 | 3.95 | 3.92 | 3.82 | 3.88 | 3.84 | 3.66 | 3.94 | 4.46 | ||||
| DSO | days | 44.14 | 81.95 | 83.71 | 41.04 | 43.28 | 42.74 | 43.22 | 92.33 | 93.01 | 95.52 | 94.07 | 95.17 | 99.77 | 92.72 | 81.93 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.27
= 44.14
To analyze Xerox Holdings Corp's Days Sales Outstanding (DSO) over the past eight quarters, we observe a general trend of decreasing DSO from Q4 2022 to Q1 2023, followed by an increase in Q2 and Q3 2023, and then a slight decline again in Q4 2023.
It is noteworthy that the DSO metric measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO indicates that the company is collecting payments more quickly, which can be seen as a positive sign of efficiency in accounts receivable management.
In the latest quarter, Q4 2023, Xerox Holdings Corp's DSO stands at 94.14 days, which is lower than the DSO figures in the previous two quarters. This suggests an improvement in the company's ability to collect payments promptly, potentially indicating effective credit policies, efficient billing practices, or proactive collection efforts.
While fluctuations in DSO are common and can be influenced by various factors such as seasonality, industry trends, or changes in customer payment behavior, it is essential for Xerox Holdings Corp to continue monitoring and managing its DSO to ensure optimal cash flow management and overall financial health.
Peer comparison
Dec 31, 2023