Xerox Corp (XRX)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,048,000 | 1,957,000 | 1,970,000 | 1,961,000 | 2,031,000 | 1,998,000 | 1,978,000 | 1,978,000 | 1,982,000 | 2,105,000 | 2,159,000 | 2,140,000 | 2,312,000 | 2,332,000 | 2,404,000 | |||
| Inventory | US$ in thousands | 661,000 | 728,000 | 782,000 | 863,000 | 797,000 | 777,000 | 765,000 | 732,000 | 696,000 | 788,000 | 815,000 | 841,000 | 843,000 | 978,000 | 922,000 | 824,000 | 694,000 | 758,000 |
| Inventory turnover | 3.10 | 2.69 | 2.52 | 2.27 | 2.55 | 2.57 | 2.59 | 2.70 | 2.85 | 2.67 | 2.65 | 2.54 | 2.74 | 2.38 | 2.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,048,000K ÷ $661,000K
= 3.10
The inventory turnover ratio for Xerox Holdings Corp has shown some fluctuations over the past eight quarters. In Q4 2023, the inventory turnover ratio was at 6.72, which indicates that the company converted its inventory into sales 6.72 times during that period. This represents an improvement compared to the previous quarter where the ratio was 6.23.
Overall, Xerox's inventory turnover has remained relatively stable, staying within the range of 5.40 to 6.72 over the past two years. A higher inventory turnover ratio typically indicates that a company is efficiently managing its inventory by quickly selling and replacing its stock. This can be seen as a positive sign of operational efficiency and effective inventory management.
However, it is important to note that inventory turnover ratios can vary by industry, so it is essential to compare Xerox's ratios to industry benchmarks for a more accurate assessment. Additionally, a declining inventory turnover ratio may suggest potential overstocking or slowing sales, which could warrant further investigation into the company's operations and sales strategy.
Peer comparison
Dec 31, 2023
Dec 31, 2023