Xerox Corp (XRX)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 | 9,450,000 |
| Total current assets | US$ in thousands | 3,177,000 | 4,107,000 | 4,701,000 | 5,783,000 | 6,140,000 |
| Total current liabilities | US$ in thousands | 2,779,000 | 3,330,000 | 2,829,000 | 2,478,000 | 3,435,000 |
| Working capital turnover | 17.68 | 9.33 | 3.90 | 2.20 | 3.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,035,000K ÷ ($3,177,000K – $2,779,000K)
= 17.68
The working capital turnover ratio for Xerox Holdings Corp has shown a consistent improvement over the past five years, indicating a more efficient management of its working capital. The ratio has increased from 1.89 in 2019 to 17.30 in 2023, reflecting a significant enhancement in the company's ability to generate revenue from its working capital.
This improvement suggests that Xerox Holdings Corp has been able to more effectively utilize its current assets and liabilities to support its operations and generate sales. A higher working capital turnover ratio indicates that the company is able to turn over its working capital more frequently, thereby potentially generating more revenue with the same amount of investment in working capital.
Overall, the increasing trend in the working capital turnover ratio for Xerox Holdings Corp signifies a positive development in the company's operational efficiency and financial performance over the years.
Peer comparison
Dec 31, 2023