Xerox Corp (XRX)
Payables 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 |
| Payables | US$ in thousands | 1,044,000 | 1,331,000 | 1,069,000 | 983,000 | 1,053,000 |
| Payables turnover | 1.97 | 1.53 | 1.85 | 2.27 | 2.41 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,054,000K ÷ $1,044,000K
= 1.97
The payables turnover ratio for Xerox Holdings Corp has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by showing how many times a company pays off its average accounts payable balance during a period.
In 2019, Xerox had a relatively high payables turnover ratio of 5.02, suggesting that the company was paying off its suppliers more frequently compared to the subsequent years. This could be an indicator of strong cash management practices or favorable credit terms with suppliers.
However, in the following years, the payables turnover ratio decreased, reaching its lowest point in 2022 with a ratio of 3.52. This could imply that Xerox was taking longer to pay its suppliers during that period, which could have been a strategic decision to manage cash flow or negotiate better credit terms.
The ratio rebounded in 2023 to 4.25, indicating that Xerox improved its payables management efficiency compared to the previous year. Overall, while there have been fluctuations in the payables turnover ratio, Xerox has generally maintained a moderate level of efficiency in managing its accounts payable over the past five years.
Peer comparison
Dec 31, 2023