Xerox Corp (XRX)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 576,000 | 521,000 | 485,000 | 685,000 | 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 |
| Short-term investments | US$ in thousands | — | -26,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 796,000 | 1,049,000 | 1,093,000 | 1,383,000 | 850,000 | 1,608,000 | 1,666,000 | 818,000 | 857,000 | 835,000 | 849,000 | 1,830,000 | 1,860,000 | 1,930,000 | 1,903,000 | 1,846,000 | 1,965,000 | 1,961,000 | 1,835,000 |
| Total current liabilities | US$ in thousands | 2,619,000 | 2,393,000 | 2,046,000 | 2,438,000 | 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 |
| Quick ratio | 0.52 | 0.65 | 0.77 | 0.85 | 0.49 | 0.71 | 0.73 | 0.49 | 0.57 | 0.53 | 0.59 | 0.93 | 1.31 | 1.49 | 1.50 | 1.60 | 1.85 | 1.56 | 1.08 |
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 of Xerox Corp has shown fluctuating trends over the period from June 30, 2020, to December 31, 2024. Initially, the quick ratio increased steadily from 1.08 on June 30, 2020, to a peak of 1.85 on December 31, 2020. This indicates the company had sufficient liquid assets to cover its current liabilities in the short term.
However, starting from March 31, 2022, the quick ratio started to decline, reaching a low of 0.49 on December 31, 2023. This significant drop may raise concerns about the company's ability to meet its short-term obligations using its quick assets.
Subsequently, there was a slight recovery in the quick ratio, reaching 0.77 on June 30, 2024. Despite this improvement, the ratio remained below 1, suggesting that Xerox Corp may still face challenges in meeting its short-term obligations with only its most liquid assets.
Overall, the decreasing trend in the quick ratio of Xerox Corp indicates a potential liquidity strain, which may require closer monitoring to ensure the company's financial health and ability to fulfill its short-term financial commitments.
Peer comparison
Dec 31, 2024