Xerox Corp (XRX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 70.86% | 3.67% | 4.85% | 5.11% | 3.53% | 71.98% | 72.41% | 72.66% | 72.85% | 71.46% | 70.76% | 69.77% | 67.84% | 69.79% | 70.59% |
| Operating profit margin | 48.04% | 64.97% | 64.56% | 64.08% | 61.50% | 48.79% | 49.71% | 50.47% | 51.02% | 47.06% | 45.76% | 43.56% | 39.89% | 44.62% | 46.32% |
| Pretax margin | -0.40% | 2.86% | -3.29% | -2.10% | -4.50% | -16.56% | -9.97% | -8.46% | -6.47% | 4.66% | 5.11% | 4.41% | 3.56% | 13.50% | 14.80% |
| Net profit margin | 0.01% | 2.51% | -3.47% | -2.68% | -4.45% | -15.68% | -9.00% | -7.60% | -6.23% | 4.03% | 4.02% | 3.29% | 2.67% | 12.09% | 13.02% |
Xerox Holdings Corp's profitability ratios exhibit some fluctuation over the quarters analyzed. The gross profit margin has shown a general improvement from Q1 2022 to Q4 2023, indicating that the company has been effectively managing its cost of goods sold and generating more revenue.
The operating profit margin has also been on an upward trend, reflecting Xerox's ability to control operating expenses and generate profit from its core business operations. This improvement suggests increasing operational efficiency and effectiveness.
However, the pretax margin has been volatile, with some quarters showing negative margins. This indicates that Xerox has been facing challenges in generating profit before accounting for taxes and other expenses.
Similarly, the net profit margin has shown inconsistency, with some quarters experiencing negative margins. This suggests that Xerox's bottom-line profitability has been affected by various factors such as cost management, revenue generation, and non-operating items.
Overall, while Xerox has shown improvements in its gross and operating profit margins, there are lingering challenges in its pretax and net profit margins that may require further analysis and strategic actions to address.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 33.74% | 44.55% | 44.38% | 42.21% | 38.51% | 30.46% | 29.05% | 27.91% | 28.16% | 24.65% | 23.95% | 21.61% | 19.46% | 22.44% | 26.81% |
| Return on assets (ROA) | 0.01% | 1.72% | -2.38% | -1.77% | -2.79% | -9.79% | -5.26% | -4.20% | -3.44% | 2.11% | 2.10% | 1.63% | 1.30% | 6.08% | 7.53% |
| Return on total capital | 6.70% | 14.09% | -1.36% | 1.24% | -3.77% | -30.19% | -13.17% | -9.66% | -5.97% | 10.74% | 11.29% | 9.73% | 8.42% | 23.09% | 26.05% |
| Return on equity (ROE) | 0.04% | 6.45% | -7.45% | -5.64% | -9.63% | -34.47% | -16.65% | -13.15% | -10.26% | 5.72% | 5.62% | 4.29% | 3.43% | 17.13% | 19.43% |
Xerox Holdings Corp's profitability ratios show fluctuations over the past eight quarters.
1. Operating return on assets (Operating ROA) has been relatively stable, ranging from 3.01% to 4.09%, indicating the company's ability to generate profits from its assets efficiently.
2. Return on assets (ROA) has been negative in most quarters, with Q3 2023 being the only positive at 1.59%. This suggests that the company has struggled to generate consistent profits relative to its total assets.
3. Return on total capital has shown an increasing trend, with values ranging from 2.72% to 6.49%. This indicates the company's ability to generate returns on the total capital employed in its operations.
4. Return on equity (ROE) has also exhibited fluctuations, with negative values in most quarters. This indicates that shareholders have not consistently seen positive returns on their investments in Xerox Holdings Corp.
In general, Xerox Holdings Corp's profitability ratios reflect a mixed performance, with some ratios showing improvement while others remain challenging. Further analysis of the company's operations and financial strategies may be needed to understand the underlying reasons for these fluctuations.