Xerox Corp (XRX)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,000 | -322,000 | -455,000 | 192,000 | 1,353,000 |
| Revenue | US$ in thousands | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 | 9,450,000 |
| Net profit margin | 0.01% | -4.44% | -6.24% | 2.64% | 14.32% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,000K ÷ $7,035,000K
= 0.01%
The net profit margin of Xerox Holdings Corp has exhibited significant fluctuation over the past five years. In 2019, the company achieved a relatively high net profit margin of 14.77%, indicating that for every dollar of revenue generated, the company retained approximately 14.77 cents as profit. However, this trend reversed in subsequent years, with the net profit margin declining to 2.53% at the end of 2020.
The downward trajectory continued in 2021 and 2022, as the net profit margin further decreased to -6.66% and -4.73%, respectively. This indicates that the company's expenses and costs surpassed its revenues during these periods, resulting in negative profitability. The most recent data point for 2023 shows a slight improvement but remains negative at -0.19%.
The declining trend in the net profit margin over the past few years suggests potential challenges in cost management, revenue generation, or both for Xerox Holdings Corp. Investors and stakeholders may need to closely monitor the company's financial performance and the effectiveness of its strategies to reverse this trend and improve profitability.
Peer comparison
Dec 31, 2023