Xerox Corp (XRX)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,899,000 | 2,052,000 | 2,063,000 | 2,123,000 | 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 |
| Payables | US$ in thousands | 1,023,000 | 895,000 | 936,000 | 1,046,000 | 1,044,000 | 1,031,000 | 1,041,000 | 1,301,000 | 1,331,000 | 1,213,000 | 1,207,000 | 1,183,000 | 1,069,000 | 1,032,000 | 935,000 | 932,000 | 983,000 | 1,018,000 | 916,000 |
| Payables turnover | 1.86 | 2.29 | 2.20 | 2.03 | 1.96 | 1.90 | 1.89 | 1.51 | 1.53 | 1.65 | 1.64 | 1.67 | 1.85 | 2.04 | 2.31 | 2.30 | 2.35 | 2.29 | 2.62 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,899,000K ÷ $1,023,000K
= 1.86
The payables turnover ratio for Xerox Corp has shown some fluctuations over the periods covered in the data. The ratio indicates how efficiently the company is managing its accounts payables by measuring how quickly it pays its suppliers.
From June 2020 to September 2021, the payables turnover ratio ranged between 2.04 and 2.62, suggesting a relatively stable payment pattern. Starting from December 2021, the ratio began to decline, reaching its lowest point of 1.51 in March 2023 before gradually increasing again.
The decrease in the payables turnover ratio indicates that Xerox Corp took longer to pay its suppliers during that period, which may have implications for its liquidity and relationships with suppliers. However, the subsequent increase in the ratio signals an improvement in the efficiency of payables management.
Overall, a payables turnover ratio below 1.0 would indicate that Xerox Corp is taking longer to pay its suppliers compared to the industry average, while a ratio above 1.0 would suggest that the company is paying its suppliers more quickly. The trend in Xerox Corp's payables turnover ratio should be monitored to assess the effectiveness of its working capital management strategies.
Peer comparison
Dec 31, 2024