Xerox Corp (XRX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.80% | 3.79% | 72.89% | 69.26% | 73.10% |
| Operating profit margin | 48.00% | 48.92% | 50.95% | 42.36% | 49.65% |
| Pretax margin | -0.40% | -4.48% | -6.47% | 3.52% | 16.21% |
| Net profit margin | 0.01% | -4.44% | -6.24% | 2.64% | 14.32% |
Over the past five years, Xerox Holdings Corp has experienced a downward trend in its profitability ratios. The gross profit margin has fluctuated but remained relatively stable between 34.14% and 41.71%. However, the operating profit margin has shown a decline from 12.65% in 2019 to 5.02% in 2023. This indicates that the company's ability to generate profits from its core operations has been decreasing over time.
Similarly, the pretax margin has also shown a decreasing trend, with negative margins in 2020, 2021, and 2023. This suggests that Xerox has struggled with controlling operating expenses and other costs, leading to reduced profitability before accounting for taxes.
The net profit margin, which reflects the overall profitability of the company after all expenses have been deducted, has also declined significantly from 14.77% in 2019 to negative margins in 2021, 2022, and 2023. This indicates that Xerox has faced challenges in managing its costs and has experienced difficulty in generating profits for its shareholders.
Overall, the decreasing trend in profitability ratios over the past five years suggests that Xerox Holdings Corp may be facing challenges in maintaining profitability and efficiency in its operations. Investors and stakeholders may need to closely monitor the company's financial performance and assess its strategies to address these issues.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 33.74% | 30.73% | 28.11% | 20.87% | 31.18% |
| Return on assets (ROA) | 0.01% | -2.79% | -3.44% | 1.30% | 8.99% |
| Return on total capital | 6.70% | -3.77% | -5.97% | 8.42% | 31.64% |
| Return on equity (ROE) | 0.04% | -9.63% | -10.26% | 3.43% | 24.22% |
The profitability ratios of Xerox Holdings Corp show mixed performance over the past five years.
1. Operating return on assets (Operating ROA):
- The Operating ROA has fluctuated over the period, ranging from 3.46% in 2023 to 7.62% in 2019.
- While there was an improvement in 2023 compared to the previous years, the ratio remains relatively lower than the peak in 2019.
2. Return on assets (ROA):
- The ROA has been negative in most years, indicating operational challenges in generating profits from its assets.
- It decreased significantly from 1.21% in 2020 to -0.13% in 2023, reflecting a decline in profitability.
3. Return on total capital:
- The return on total capital has been increasing over the years, reaching 5.74% in 2023.
- Despite the improvement, the ratio remains below the level recorded in 2019 of 11.45%.
4. Return on equity (ROE):
- The ROE has been mostly negative, signifying that the company's profitability in relation to shareholders' equity has been weak.
- Although there was a positive ROE of 3.07% in 2020 and 23.08% in 2019, the ratio declined to -0.47% in 2023.
Overall, the company has struggled to maintain consistent profitability, as seen in the negative ROA and ROE figures. While there have been improvements in some ratios in 2023, Xerox Holdings Corp faces challenges in enhancing its profitability and effectively utilizing its assets and capital.