Xerox Corp (XRX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 576,000 | 519,000 | 1,045,000 | 1,840,000 | 2,625,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,619,000 | 2,779,000 | 3,330,000 | 2,829,000 | 2,478,000 |
| Cash ratio | 0.22 | 0.19 | 0.31 | 0.65 | 1.06 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($576,000K
+ $—K)
÷ $2,619,000K
= 0.22
The cash ratio of Xerox Corp has shown a declining trend over the past five years, decreasing from 1.06 in December 2020 to 0.22 in December 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has decreased significantly. A cash ratio below 1 suggests that Xerox may have difficulties meeting its short-term obligations solely with its available cash on hand. It is important for investors and stakeholders to monitor Xerox's liquidity position closely, as a low cash ratio could potentially signal financial distress or operational challenges for the company.
Peer comparison
Dec 31, 2024