Xerox Corp (XRX)
Payables 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 | |||
| Payables | US$ in thousands | 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 | 1,122,000 | 1,053,000 | 1,070,000 |
| Payables turnover | 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, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,048,000K ÷ $1,044,000K
= 1.96
The payables turnover of Xerox Holdings Corp has been relatively consistent over the past eight quarters, ranging from 3.52 to 4.43 times. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers in a given period.
A higher payables turnover ratio suggests that Xerox is paying off its suppliers more frequently, potentially indicating strong liquidity or effective management of working capital. However, a very high ratio could also signal a risk of strained supplier relationships.
On the other hand, a lower payables turnover ratio could indicate that Xerox is taking longer to pay its suppliers, which may strain relationships or even lead to missed discounts for early payments.
Overall, with payables turnover consistently around 4 times, Xerox appears to be effectively managing its payables while maintaining good relationships with suppliers. It is important for the company to continue monitoring this ratio to ensure optimal utilization of working capital and healthy supplier partnerships.
Peer comparison
Dec 31, 2023