Xerox Corp (XRX)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,008,000 | 10,444,000 | 10,569,000 | 11,046,000 | 11,543,000 | 11,420,000 | 12,270,000 | 13,082,000 | 13,223,000 | 14,081,000 | 14,110,000 | 14,272,000 | 14,741,000 | 15,352,000 | 14,125,000 | 14,784,000 | 15,047,000 | 14,660,000 |
| 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 |
| Financial leverage ratio | 3.94 | 3.74 | 3.12 | 3.19 | 3.45 | 3.52 | 3.17 | 3.13 | 2.98 | 2.71 | 2.67 | 2.63 | 2.64 | 2.82 | 2.58 | 2.74 | 2.69 | 3.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,008,000K ÷ $2,538,000K
= 3.94
The financial leverage ratio of Xerox Holdings Corp has been fluctuating over the past eight quarters, ranging from 2.94 to 3.64. The ratio indicates the company's level of financial leverage, i.e., the extent to which it relies on debt to finance its operations compared to equity.
A higher financial leverage ratio suggests that Xerox is more heavily reliant on debt financing, which can magnify returns but also increase financial risk. Conversely, a lower ratio indicates a lower level of debt usage relative to equity.
The trend in the financial leverage ratio shows some variability, with peaks and troughs across the quarters. Overall, the company appears to have maintained a moderate to high level of financial leverage during this period. It may be important for stakeholders to monitor this ratio in conjunction with other financial metrics to assess Xerox's overall financial health and risk profile.
Peer comparison
Dec 31, 2023