Xerox Corp (XRX)
Working capital 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 current assets | US$ in thousands | 2,935,000 | 3,177,000 | 4,107,000 | 4,701,000 | 5,783,000 |
| Total current liabilities | US$ in thousands | 2,619,000 | 2,779,000 | 3,330,000 | 2,829,000 | 2,478,000 |
| Working capital turnover | 20.65 | 17.68 | 9.33 | 3.90 | 2.20 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,524,000K ÷ ($2,935,000K – $2,619,000K)
= 20.65
The working capital turnover of Xerox Corp has shown a positive trend over the past five years, increasing from 2.20 in December 2020 to 20.65 in December 2024. This indicates that the company is more efficiently utilizing its working capital to generate sales revenue.
The significant rise in working capital turnover, reaching 20.65 by the end of 2024, suggests that Xerox has been able to effectively manage its working capital components such as current assets and current liabilities to support its operations. This improved efficiency can be attributed to better inventory management, optimized accounts receivable collection, and effective cash flow management.
A higher working capital turnover ratio signifies that Xerox is able to convert its investment in working capital into sales at a faster rate, which can lead to increased profitability and overall financial health. It also indicates that the company is operating more efficiently and effectively utilizing its resources to drive revenue growth.
Overall, the upward trend in Xerox's working capital turnover ratio reflects positively on the company's financial performance and operational efficiency. It demonstrates a strong ability to manage and leverage its working capital effectively to support sustainable business growth.
Peer comparison
Dec 31, 2024