Xerox Corp (XRX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 576,000 | 519,000 | 1,045,000 | 1,840,000 | 2,625,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 796,000 | 850,000 | 857,000 | 1,860,000 | 1,965,000 |
| Total current liabilities | US$ in thousands | 2,619,000 | 2,779,000 | 3,330,000 | 2,829,000 | 2,478,000 |
| Quick ratio | 0.52 | 0.49 | 0.57 | 1.31 | 1.85 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($576,000K
+ $—K
+ $796,000K)
÷ $2,619,000K
= 0.52
The quick ratio, also known as the acid-test ratio, is a financial metric used to evaluate a company's short-term liquidity position by measuring its ability to meet its short-term obligations using its most liquid assets.
Based on the data provided:
- December 31, 2020: Quick ratio of 1.85
- December 31, 2021: Quick ratio of 1.31
- December 31, 2022: Quick ratio of 0.57
- December 31, 2023: Quick ratio of 0.49
- December 31, 2024: Quick ratio of 0.52
The quick ratio for Xerox Corp has shown a significant decline from 1.85 in December 2020 to 0.52 in December 2024. This decreasing trend indicates that the company's ability to cover its short-term liabilities with its most liquid assets has weakened over the years.
A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term obligations without relying on inventory or other less liquid assets. However, it is important to consider industry benchmarks and compare Xerox Corp's quick ratio with its peers to gain a better understanding of its liquidity position relative to the industry.
Overall, Xerox Corp's declining quick ratio raises concerns about its short-term liquidity and may require further analysis to understand the underlying reasons for this trend and its potential impact on the company's financial health.
Peer comparison
Dec 31, 2024