Xerox Corp (XRX)
Return on total capital
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 170,000 | 393,000 | -46,000 | 43,000 | -126,000 | -979,000 | -510,000 | -404,000 | -265,000 | 557,000 | 597,000 | 528,000 | 471,000 | 1,258,000 | 1,427,000 | |||
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 5,393,000 | 5,587,000 | 4,855,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $170,000K ÷ ($—K + $2,538,000K)
= 6.70%
Over the past eight quarters, Xerox Holdings Corp's return on total capital has shown a fluctuating trend. In Q4 2023, the return on total capital was 5.74%, which decreased from the previous quarter's level of 6.49%. Despite this slight decrease, the Q4 2023 return remains higher than the levels seen in earlier quarters, indicating some level of improvement in capital efficiency.
It is worth noting that the return on total capital has generally been on an upward trajectory since Q1 2022, indicating that Xerox has been utilizing its capital more effectively to generate returns for its investors. However, the quarterly fluctuations suggest that there may be variability in the company's capital utilization efficiency.
Overall, further analysis of Xerox's financial performance and capital allocation strategies would be needed to provide a more comprehensive understanding of its return on total capital trend and its implications for the company's financial health and profitability.
Peer comparison
Dec 31, 2023