Xerox Corp (XRX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 7.77 | 6.39 | 4.02 | 4.18 | 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 |
Based on the solvency ratios of Xerox Corp, we can observe the following trends:
1. Debt-to-assets ratio: Xerox Corp has maintained a consistent 0.00 debt-to-assets ratio over the years analyzed. This indicates that the company has not used debt financing to fund its assets, suggesting a strong financial position in terms of asset coverage by equity.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also remained constant at 0.00 throughout the period. This further supports the observation that the company has not heavily relied on debt to finance its operations and investments.
3. Debt-to-equity ratio: Xerox Corp's debt-to-equity ratio has consistently stayed at 0.00, indicating that the company has not taken on any debt relative to its equity levels. This suggests a low risk of financial distress due to excessive debt burden.
4. Financial leverage ratio: The financial leverage ratio, which reflects the proportion of debt in the company's capital structure, has shown an increasing trend over the years. This increase indicates that Xerox Corp has been gradually relying more on debt to finance its operations and investments, potentially leading to higher financial risk and interest burden.
Overall, Xerox Corp's solvency ratios suggest a strong financial position with minimal debt levels relative to its assets and equity. However, the increasing financial leverage ratio indicates a shift towards more debt financing, which could impact the company's financial stability in the long run. Monitoring this trend will be crucial to assess the company's solvency and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -4.40 | -4.70 | 0.31 | -0.31 | 0.86 | 2.09 | -0.24 | 0.22 | -0.63 | -4.85 | -2.49 | -1.94 | -1.28 | 2.62 | 2.71 | 2.44 | 2.19 | 5.82 | 6.58 |
The interest coverage ratio of Xerox Corp has shown significant fluctuations over the reported periods. Initially, the company had a healthy interest coverage ratio, reflecting its ability to comfortably meet interest obligations from its operating income. However, starting from December 31, 2021, the interest coverage ratio turned negative, indicating that the company's operating income was insufficient to cover its interest expenses.
This negative trend continued through the subsequent periods up to December 31, 2024, signifying a concerning financial position where the company's interest obligations were outpacing its operating income. A negative interest coverage ratio raises doubts about Xerox Corp's financial stability and its ability to service its debt effectively.
Overall, the declining and consistently negative interest coverage ratios suggest a potential strain on Xerox Corp's financial health, signaling the importance of closely monitoring its ability to generate sufficient income to cover interest expenses in the future.