Xerox Corp (XRX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 | 9,450,000 |
| Property, plant and equipment | US$ in thousands | 265,000 | 235,000 | 253,000 | 296,000 | 364,000 |
| Fixed asset turnover | 26.55 | 30.86 | 28.84 | 24.54 | 25.96 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,035,000K ÷ $265,000K
= 26.55
The fixed asset turnover ratio measures the efficiency of a company in generating sales from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
Analyzing Xerox Holdings Corp's fixed asset turnover from 2019 to 2023, we observe a fluctuating trend. The ratio increased from 11.48 in 2019 to 12.97 in 2023, indicating an improvement in the efficiency of generating sales from fixed assets. This suggests that Xerox has been able to generate more revenue from its investment in property, plant, and equipment.
The trend of increasing fixed asset turnover implies that Xerox has been able to efficiently manage and utilize its fixed assets over the years. This is a positive sign for investors as it reflects the company's ability to generate more sales relative to its investment in fixed assets.
Overall, the increasing trend in Xerox's fixed asset turnover ratio signals improved efficiency in utilizing its fixed assets to drive revenue growth, which bodes well for the company's financial performance and operational productivity.
Peer comparison
Dec 31, 2023