Xerox Corp (XRX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,054,000 | 2,030,000 | 1,978,000 | 2,233,000 | 2,542,000 |
| Inventory | US$ in thousands | 661,000 | 797,000 | 696,000 | 843,000 | 694,000 |
| Inventory turnover | 3.11 | 2.55 | 2.84 | 2.65 | 3.66 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,054,000K ÷ $661,000K
= 3.11
The inventory turnover ratio of Xerox Holdings Corp has fluctuated over the past five years. In 2023, the inventory turnover ratio was 6.72, indicating that the company sold and replaced its inventory approximately 6.72 times during the year. This represents an improvement compared to 2022 when the ratio was 5.87. The increasing trend from 2020 to 2023 suggests improved inventory management efficiency.
However, it is worth noting that the inventory turnover ratio was highest in 2019 at 7.62 but then decreased in the following years before showing an improvement in 2023. This indicates that Xerox has managed to streamline its inventory management processes in the most recent year. Overall, a higher inventory turnover ratio typically indicates better liquidity and efficient inventory management, which is a positive signal for the company's operations.
Peer comparison
Dec 31, 2023