Xerox Corp (XRX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,365,000 | 10,008,000 | 11,543,000 | 13,223,000 | 14,741,000 |
| Total stockholders’ equity | US$ in thousands | 1,076,000 | 2,538,000 | 3,343,000 | 4,436,000 | 5,592,000 |
| Financial leverage ratio | 7.77 | 3.94 | 3.45 | 2.98 | 2.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,365,000K ÷ $1,076,000K
= 7.77
The financial leverage ratio for Xerox Corp has shown a steady increase over the past five years, starting at 2.64 in December 31, 2020, and reaching 7.77 by December 31, 2024. This suggests that the company has been relying more on debt to finance its operations and investments. A higher leverage ratio indicates a higher level of financial risk and potential vulnerability to economic downturns or changes in interest rates. Xerox Corp may need to carefully manage its debt levels to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2024
Company name
Symbol
Financial leverage ratio
Xerox Corp
XRX
7.77
Corsair Gaming Inc
CRSR
2.03
Fortinet Inc
FTNT
—
Palo Alto Networks Inc
PANW
3.87