Xerox Corp (XRX)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -1,321,000 | -1,358,000 | -104,000 | -183,000 | 1,000 | 180,000 | -252,000 | -195,000 | -322,000 | -1,118,000 | -645,000 | -550,000 | -455,000 | 297,000 | 297,000 | 233,000 | 192,000 | 933,000 | 1,064,000 |
| Total stockholders’ equity | US$ in thousands | 1,076,000 | 1,303,000 | 2,361,000 | 2,378,000 | 2,538,000 | 2,789,000 | 3,384,000 | 3,459,000 | 3,343,000 | 3,243,000 | 3,873,000 | 4,184,000 | 4,436,000 | 5,188,000 | 5,287,000 | 5,425,000 | 5,592,000 | 5,448,000 | 5,477,000 |
| ROE | -122.77% | -104.22% | -4.40% | -7.70% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-1,321,000K ÷ $1,076,000K
= -122.77%
The return on equity (ROE) of Xerox Corp has shown fluctuations over the periods analyzed. Starting with a strong ROE of 19.43% in June 2020, the company's performance gradually declined, reaching a low of -122.77% in December 2024. The ROE turned negative in 2021 and continued to deteriorate through 2024.
This trend indicates that Xerox Corp's ability to generate profits from shareholders' equity has been diminishing, possibly due to challenges in operational efficiency, declining profitability, or changes in capital structure. Investors and stakeholders may be concerned about the company's declining ROE, as it reflects a diminishing return on the capital invested in the business.
It would be essential for Xerox Corp to address the underlying factors contributing to the decreasing ROE and implement strategic measures to improve profitability and efficiently utilize shareholders' equity to create value in the long term.
Peer comparison
Dec 31, 2024