Xerox Corp (XRX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.14 | 1.23 | 1.66 | 2.33 | 1.79 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,177,000K ÷ $2,779,000K
= 1.14
The current ratio of Xerox Holdings Corp has exhibited fluctuation in recent years. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. A current ratio above 1 indicates the company has more current assets than current liabilities.
In 2023, the current ratio decreased to 1.14 from 1.23 in 2022, reflecting a potential decrease in the company's ability to cover its short-term obligations with current assets. This might suggest a liquidity challenge as the company may be less capable of meeting its short-term liabilities without potentially resorting to external financing sources or asset sales.
Comparing the current ratio in 2023 to 2021, which was 1.16, there was a slight decrease indicating that the company may have faced challenges in managing its short-term liquidity position. However, it is still above 1, indicating that the company has sufficient current assets to cover its short-term liabilities.
In 2020 and 2019, Xerox Holdings Corp had significantly higher current ratios of 2.33 and 2.39, respectively. These high ratios indicate a stronger liquidity position during those years, with more than enough current assets to cover current liabilities.
Overall, a decreasing trend in the current ratio over the past few years suggests a potential need for Xerox Holdings Corp to more effectively manage its short-term liquidity and ensure it has sufficient current assets to meet its current liabilities without straining its financial position.
Peer comparison
Dec 31, 2023