Xerox Corp (XRX)

Short-term

Turnover ratios

Based on the activity ratios of Xerox Corp over the given time periods, here is a detailed analysis:

1. Inventory Turnover:
- Xerox Corp's inventory turnover ratio fluctuated between 2.27 and 3.10 over the observed period.
- This ratio indicates how effectively Xerox is managing its inventory levels and converting it into sales.
- Generally, a higher inventory turnover ratio is desirable as it suggests efficient inventory management. Xerox showed improvement in inventory turnover from 2.27 to 3.10 over time.

2. Receivables Turnover:
- The receivables turnover ratio of Xerox varied between 3.66 and 8.89 throughout the analyzed period.
- This ratio reflects how efficiently the company is collecting outstanding receivables from its customers.
- A higher receivables turnover ratio signifies a shorter time taken to collect receivables, which is generally favorable for liquidity. Xerox experienced fluctuations in this ratio during the period.

3. Payables Turnover:
- Xerox Corp's payables turnover ratio ranged between 1.51 and 2.29 over the given timeframe.
- This ratio indicates how quickly Xerox is paying its suppliers for goods and services received.
- A higher payables turnover ratio may suggest that the company is efficiently managing its payables and not delaying payments excessively. Xerox's payables turnover ratio showed variability during the observed period.

4. Working Capital Turnover:
- The working capital turnover of Xerox fluctuated significantly from 2.18 to 20.58 during the analyzed period.
- This ratio evaluates how effectively the company is utilizing its working capital to generate sales.
- A higher working capital turnover ratio implies efficient utilization of resources. Xerox showed significant fluctuations in this ratio, indicating changes in working capital management efficiency.

In conclusion, Xerox Corp's activity ratios display varying levels of efficiency in managing inventory, receivables, payables, and working capital over the analyzed time periods. Monitoring and understanding these ratios can provide insights into the company's operational performance and financial health.

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Average number of days

Xerox Corp's Days of Inventory on Hand (DOH) fluctuated over the past few years, ranging from a high of 160.63 days on March 31, 2023, to a low of 117.81 days on December 31, 2023. Overall, Xerox seems to have managed its inventory well, with the DOH metric showing some variability but generally staying within a reasonable range.

In terms of Days of Sales Outstanding (DSO), Xerox saw significant fluctuations over the same period. DSO peaked at 99.77 days on December 31, 2020, and dropped to a low of 41.04 days on March 31, 2023. This could indicate improvements in the company's accounts receivable management during this period.

When looking at the Number of Days of Payables, Xerox also experienced fluctuations, with a high of 242.15 days on March 31, 2023, and a low of 159.20 days on September 30, 2024. The increasing trend in payables days could imply that Xerox is taking longer to pay its suppliers, which may have implications for its working capital management.

Overall, Xerox's activity ratios show a mix of performance trends in managing inventory, receivables, and payables. It is important for the company to monitor and manage these ratios effectively to optimize its cash flow and working capital position.

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Long-term

Xerox Corp's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, demonstrate the company's efficiency in utilizing its assets to generate sales.

The Fixed Asset Turnover ratio has shown a fluctuating trend over the past few years, ranging from a high of 33.01 in September 2022 to a low of 24.29 in December 2020. However, the ratio has generally been increasing over time, indicating that Xerox has been more effective in generating revenue from its fixed assets.

On the other hand, the Total Asset Turnover ratio has also shown variability, with values ranging from 0.49 in December 2020 to 0.79 in September 2024. The ratio reached its peak in September 2024, indicating that Xerox has been successful in using both fixed and current assets efficiently to generate sales.

Overall, the increasing trend in both the Fixed Asset Turnover and Total Asset Turnover ratios suggests that Xerox has been improving its asset utilization efficiency over the years, which is a positive sign for the company's long-term growth and profitability.