Xerox Corp (XRX)
Total asset 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 |
| Total assets | US$ in thousands | 8,365,000 | 10,008,000 | 11,543,000 | 13,223,000 | 14,741,000 |
| Total asset turnover | 0.78 | 0.70 | 0.63 | 0.55 | 0.49 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,524,000K ÷ $8,365,000K
= 0.78
The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. In the case of Xerox Corp, there has been a consistent improvement in the total asset turnover ratio over the years, increasing from 0.49 in 2020 to 0.78 in 2024. This indicates that Xerox has become more effective in utilizing its assets to generate sales.
The gradual increase in the total asset turnover ratio suggests that Xerox is managing its assets more efficiently and effectively over time. This improvement may be attributed to better operational efficiency, effective asset utilization, or strategic management decisions.
Overall, the rising trend in Xerox's total asset turnover ratio reflects a positive sign of the company's ability to generate more sales revenue relative to its asset base, indicating improved operational performance and potentially leading to higher profitability in the future.
Peer comparison
Dec 31, 2024