Xerox Corp (XRX)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,538,000 | 3,343,000 | 4,436,000 | 5,592,000 | 5,587,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,538,000K
= 0.00
The debt-to-equity ratio of Xerox Holdings Corp has been steadily increasing over the past five years, indicating a rising level of leverage relative to equity. From 0.74 in 2019, the ratio has increased to 1.19 by the end of 2023. This upward trend suggests that the company has been relying more on debt financing compared to equity financing to support its operations and growth initiatives.
A debt-to-equity ratio above 1 indicates that the company has more debt than equity in its capital structure. While some level of debt can be beneficial for companies to fund expansion and take advantage of growth opportunities, a high debt-to-equity ratio may raise concerns among investors and creditors about the company's ability to manage its debt obligations.
It is crucial for Xerox Holdings Corp to closely monitor its debt levels and ensure that it maintains a sustainable capital structure. High debt levels can lead to increased interest expenses, financial vulnerability in times of economic downturns, and potential constraints on future growth opportunities. Investors and stakeholders may carefully evaluate the company's ability to generate sufficient cash flows to service its debt obligations and the overall risk associated with its capital structure.
Peer comparison
Dec 31, 2023