Xerox Corp (XRX)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 8.27 4.45 4.36 8.89 8.43 8.54 8.45 3.95 3.92 3.82 3.88 3.84 3.66 3.94 4.46
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
Working capital turnover 17.66 20.58 16.47 9.56 9.30 12.92 10.44 9.08 3.90 3.01 2.97 2.55 2.18 2.40 5.11

Xerox Holdings Corp's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital:

1. Inventory Turnover:
- Xerox demonstrates consistent efficiency in managing its inventory, with an average turnover of around 6 times per year. This indicates that the company is effectively selling and replenishing its inventory.

2. Receivables Turnover:
- The company's receivables turnover has been relatively stable, averaging around 3.7 to 3.8 times per year. This suggests that Xerox efficiently collects payments from its customers, converting credit sales into cash effectively.

3. Payables Turnover:
- Xerox displays a relatively stable payables turnover, averaging around 3.8 to 4.4 times per year. This indicates that the company efficiently manages its payables, possibly taking advantage of trade credit terms while paying its suppliers in a timely manner.

4. Working Capital Turnover:
- The working capital turnover ratio reveals how effectively Xerox generates revenue relative to its working capital levels. The increase in Q4 2023 compared to the previous quarters and the same period last year suggests an improvement in utilizing working capital to generate sales.

Overall, Xerox Holdings Corp appears to be managing its operational assets and liabilities efficiently, as evidenced by the stability and improvement in its activity ratios over the quarters analyzed. It indicates that the company is effectively managing its resources to drive revenue and maintain a healthy financial position.

Average number of days

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
Days of inventory on hand (DOH) days 117.81 135.78 144.89 160.63 143.23 141.94 141.17 135.08 128.17 136.64 137.78 143.44 133.09 153.07 139.99
Days of sales outstanding (DSO) days 44.14 81.95 83.71 41.04 43.28 42.74 43.22 92.33 93.01 95.52 94.07 95.17 99.77 92.72 81.93
Number of days of payables days 186.06 192.29 192.88 242.15 239.20 221.59 222.73 218.30 196.86 178.95 158.07 158.96 155.19 159.34 139.08

In analyzing Xerox Holdings Corp's activity ratios, we can see a fluctuating trend in their efficiency in managing inventory, collecting receivables, and paying payables over the past eight quarters.

Days of Inventory on Hand (DOH) measures how many days, on average, Xerox holds its inventory before selling it. The trend shows a slight decrease in the number of days from Q1 2023 to Q4 2023, indicating a potential improvement in managing inventory turnover efficiency.

Days of Sales Outstanding (DSO) represents the average number of days it takes for Xerox to collect payment after making a sale. The DSO has shown a slight fluctuation but remains relatively stable, indicating consistency in collecting receivables effectively.

Number of Days of Payables indicates the number of days Xerox takes to pay its suppliers. We observe a fluctuating trend in payables days, with a substantial increase in Q1 2023 compared to the previous quarters. This could suggest a change in Xerox's payment policies or supplier relationships during that period.

Overall, Xerox's activity ratios reflect a mixed performance in managing its working capital cycle. While there are signs of improvement in inventory turnover efficiency, it is important for Xerox to focus on maintaining a balance between collecting receivables promptly and managing payables effectively to optimize its cash flow and operational efficiency.

Long-term

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
Fixed asset turnover 26.52 27.87 28.05 29.10 30.76 33.01 31.73 28.48 28.85 29.04 27.25 25.56 24.29 19.25 20.14
Total asset turnover 0.70 0.69 0.69 0.66 0.63 0.62 0.58 0.55 0.55 0.52 0.52 0.50 0.49 0.50 0.58

Xerox Holdings Corp's fixed asset turnover has been relatively stable over the past eight quarters, averaging around 12.77. This indicates that Xerox is generating approximately $12.77 in revenue for every dollar invested in fixed assets. The consistent high fixed asset turnover suggests that Xerox is effectively utilizing its fixed assets to generate sales.

On the other hand, Xerox's total asset turnover has also shown an upward trend over the same period, increasing from 0.53 in Q1 2022 to 0.69 in Q4 2023. This improvement indicates that Xerox is generating more sales for every dollar invested in total assets. A rising total asset turnover ratio usually reflects efficient asset utilization, indicating that the company is effectively managing its assets to drive revenue growth.

Overall, the analysis of Xerox Holdings Corp's long-term activity ratios suggests that the company is efficiently managing its assets, both fixed and total, to generate sales and drive revenue growth. This efficiency is a positive indicator of the company's operational performance and could contribute to its overall financial stability and profitability.