Xerox Corp (XRX)
Cash conversion cycle
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||
| Cash conversion cycle | days | -24.12 | 25.44 | 35.73 | -40.48 | -52.69 | -36.91 | -38.34 | 9.11 | 24.32 | 53.21 | 73.78 | 79.65 | 77.66 | 86.45 | 82.84 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 117.81 + 44.14 – 186.06
= -24.12
The cash conversion cycle of Xerox Holdings Corp has shown some fluctuations over the past eight quarters. The company's cash conversion cycle has ranged from a low of 62.67 days in Q4 2023 to a high of 77.03 days in Q2 2023.
A lower cash conversion cycle indicates that Xerox is able to efficiently convert its inventory into cash, which is a positive sign for the company's liquidity and operational efficiency. In contrast, a higher cash conversion cycle suggests that Xerox may be experiencing delays in converting its inventory into cash, which could potentially impact its working capital management.
Overall, Xerox's cash conversion cycle seems to have improved in Q4 2023 compared to Q2 and Q3 2023. However, it is important for the company to closely monitor and manage its cash conversion cycle to ensure optimal working capital management and financial performance.
Peer comparison
Dec 31, 2023