Xerox Corp (XRX)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 2,164,000 | 2,394,000 | 2,333,000 |
| 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 |
| Quick ratio | 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 | 1.42 | 1.49 | 0.83 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($519,000K
+ $—K
+ $850,000K)
÷ $2,779,000K
= 0.49
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Xerox Holdings Corp's quick ratio shows some fluctuation over the past eight quarters. In Q4 2023, the quick ratio was 0.88, indicating that Xerox may face some challenges in meeting its short-term obligations with its quick assets. This was a significant decrease from the previous quarter, where the quick ratio was 0.48, suggesting a potential liquidity issue.
Comparing with the same quarter in the previous year, Q4 2022 had a quick ratio of 0.98, which was higher than the latest quarter but still indicates some level of liquidity. However, Xerox's quick ratio has been declining over the past few quarters, raising concerns about its ability to cover short-term liabilities.
Overall, the downward trend in Xerox's quick ratio signals a potential liquidity strain that investors and creditors should monitor closely. It is essential for the company to ensure that its quick assets are sufficient to cover its current liabilities to maintain financial stability in the short term.
Peer comparison
Dec 31, 2023