Xerox Corp (XRX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 519,000 | 532,000 | 477,000 | 591,000 | 1,045,000 | 932,000 | 1,151,000 | 1,681,000 | 1,840,000 | 2,209,000 | 2,124,000 | 2,379,000 | 2,625,000 | 3,242,000 | 2,272,000 | 2,622,000 | 2,740,000 | 922,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,779,000 | 3,006,000 | 2,949,000 | 2,879,000 | 3,330,000 | 3,343,000 | 3,415,000 | 3,769,000 | 2,829,000 | 2,784,000 | 2,691,000 | 2,645,000 | 2,478,000 | 3,327,000 | 3,791,000 | 3,373,000 | 3,435,000 | 3,923,000 |
| Cash ratio | 0.19 | 0.18 | 0.16 | 0.21 | 0.31 | 0.28 | 0.34 | 0.45 | 0.65 | 0.79 | 0.79 | 0.90 | 1.06 | 0.97 | 0.60 | 0.78 | 0.80 | 0.24 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($519,000K
+ $—K)
÷ $2,779,000K
= 0.19
The cash ratio of Xerox Holdings Corp has shown a downward trend from Q1 2022 to Q3 2023, with fluctuations in each quarter. The ratio was highest in Q1 2022 at 0.51 and has decreased gradually to the lowest point of 0.13 in Q2 2023 before slightly increasing to 0.24 in Q4 2023.
A cash ratio below 1 indicates that Xerox Holdings Corp may not have enough liquid assets to cover its current liabilities. The decreasing trend in the cash ratio over multiple quarters could indicate potential liquidity concerns or inefficiencies in managing cash resources. However, the slight improvement in Q4 2023 suggests a temporary improvement in liquidity.
It is important for Xerox Holdings Corp to closely monitor its cash position and ensure that it maintains a healthy balance between cash on hand and its current liabilities to meet its short-term obligations effectively. Further analysis of the company's cash management practices and overall financial health would provide a more comprehensive understanding of its liquidity position.
Peer comparison
Dec 31, 2023