Xerox Corp (XRX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -991,000 | -1,072,000 | 66,000 | -62,000 | 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 | 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 |
| Return on total capital | -92.10% | -82.27% | 2.80% | -2.61% | 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, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-991,000K ÷ ($—K + $1,076,000K)
= -92.10%
Xerox Corp's return on total capital has fluctuated significantly over the past few years. From June 2020 to September 2021, the return on total capital ranged from a high of 26.05% to a low of 10.74%. However, the trend turned negative from December 2021 onwards, with the return on total capital dipping into negative territory, reaching a low of -92.10% by December 2024.
This dramatic decline in return on total capital indicates that Xerox Corp may be facing challenges in generating a sufficient return on the total capital invested in the business. Investors and analysts may want to closely monitor Xerox's financial performance and management strategies to understand the underlying factors contributing to this sharp decline in return on total capital.
Peer comparison
Dec 31, 2024