Xerox Corp (XRX)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -28,000 | -325,000 | -472,000 | 256,000 | 1,532,000 |
| Revenue | US$ in thousands | 7,035,000 | 7,251,000 | 7,296,000 | 7,264,000 | 9,450,000 |
| Pretax margin | -0.40% | -4.48% | -6.47% | 3.52% | 16.21% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-28,000K ÷ $7,035,000K
= -0.40%
The pretax margin of Xerox Holdings Corp has shown a declining trend over the past five years, starting at 9.16% in 2019 and dropping to -0.41% in 2023. This indicates that the company's profitability before taxes has deteriorated significantly. The negative pretax margin figures in 2022, 2021, and 2023 suggest that the company's expenses and/or operating costs have been outpacing its revenues, resulting in operating losses before tax. The positive pretax margin in 2020, although lower than in previous years, indicates that the company was able to generate a profit before tax during that period. Overall, Xerox Holdings Corp will need to focus on improving its cost management and revenue generation strategies to reverse the downward trend in pretax margin and enhance its profitability.
Peer comparison
Dec 31, 2023