Xerox Corp (XRX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,898,000 | 2,054,000 | 2,030,000 | 1,978,000 | 2,233,000 |
| Inventory | US$ in thousands | 695,000 | 661,000 | 797,000 | 696,000 | 843,000 |
| Inventory turnover | 2.73 | 3.11 | 2.55 | 2.84 | 2.65 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,898,000K ÷ $695,000K
= 2.73
Xerox Corp's inventory turnover has shown some variability over the past five years, ranging from a low of 2.55 in December 31, 2022, to a high of 3.11 in December 31, 2023. The general trend indicates that there was an improvement in the efficiency of managing inventory from 2020 to 2023. However, there was a slight decline in inventory turnover in 2024 to 2.73.
A higher inventory turnover ratio signifies that Xerox is selling its inventory more frequently within the year, which can indicate strong sales or effective inventory management. Conversely, a lower ratio may indicate overstocking or slow-moving inventory.
It is important for Xerox to monitor its inventory turnover ratio regularly to ensure optimal inventory management, minimize carrying costs, and maximize profitability. Additional analysis of factors impacting inventory turnover, such as sales trends and supply chain efficiency, may provide further insights into Xerox's operational performance.
Peer comparison
Dec 31, 2024