Xerox Corp (XRX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,524,000 | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 |
| Receivables | US$ in thousands | 796,000 | 850,000 | 857,000 | 1,860,000 | 1,965,000 |
| Receivables turnover | 8.20 | 8.28 | 8.46 | 3.92 | 3.70 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,524,000K ÷ $796,000K
= 8.20
Based on the data provided, we can observe an increasing trend in Xerox Corp's receivables turnover ratio over the five-year period from 2020 to 2024. The receivables turnover ratio indicates how efficiently the company is collecting outstanding receivables from its customers during a certain period.
In 2020, the receivables turnover ratio was 3.70, meaning the company collected its accounts receivable approximately 3.70 times during the year. This ratio increased to 3.92 in 2021, reflecting a slight improvement in the efficiency of receivables collection.
Significantly, in 2022, the receivables turnover ratio surged to 8.46, indicating a substantial enhancement in the company's ability to convert its accounts receivable into cash. This trend continued in 2023 and 2024, with the ratios remaining relatively stable at 8.28 and 8.20, respectively.
The notable increase in the receivables turnover ratio signifies that Xerox Corp has been more effective in managing its accounts receivable and collecting outstanding payments from customers promptly. This improvement suggests a positive impact on the company's cash flow and overall financial health, reflecting efficient credit policies and strong customer relationships.
Peer comparison
Dec 31, 2024