Xerox Corp (XRX)
Solvency ratios
| 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 |
| 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 |
| 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 |
| 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 |
The solvency ratios of Xerox Holdings Corp indicate the company's ability to meet its long-term financial obligations and overall financial stability.
The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.29 to 0.35. This ratio shows that Xerox relies on debt to finance its assets to a moderate extent, with approximately 29% to 35% of its assets funded by debt.
The debt-to-capital ratio, which measures the proportion of debt in the company's capital structure, has also shown consistency, fluctuating between 0.46 and 0.55. This indicates that Xerox's capital is composed of around 46% to 55% debt, with the remaining funded through equity.
The debt-to-equity ratio has varied from 0.87 to 1.20 during the examined period. This ratio reveals that for every dollar of equity, Xerox has between 0.87 and 1.20 dollars of debt. The trend suggests that the company has been increasing its reliance on debt compared to equity.
Lastly, the financial leverage ratio, which measures the company's total assets relative to equity, has fluctuated from 2.94 to 3.64. This indicates that Xerox has been utilizing leverage in its capital structure, with total assets being 2.94 to 3.64 times greater than equity, reflecting moderate to high financial leverage.
Overall, these solvency ratios indicate that Xerox Holdings Corp maintains a moderate level of debt in its capital structure and has been managing its financial leverage within a reasonable range. However, the company's increasing debt-to-equity ratio warrants monitoring to ensure it remains at a sustainable level.
Coverage ratios
| 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 | 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 is a measure of a company's ability to meet its interest payments on outstanding debt obligations. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
From the data provided for Xerox Holdings Corp, we observe fluctuations in the interest coverage ratio over the past eight quarters. In Q4 2023, the interest coverage ratio was 6.65, showing a strong ability to cover interest payments. This ratio decreased slightly from the previous quarter but remained at a healthy level.
Looking back further, we see that the interest coverage ratio has been consistently improving since Q1 2022, where it was 2.43. This upward trend suggests that Xerox Holdings Corp has been steadily strengthening its ability to meet its interest obligations.
It is noteworthy that the interest coverage ratio in Q3 and Q2 of 2022 was relatively low at 1.37 and 1.36, respectively, indicating a higher risk of default on interest payments during that period. However, the company has since made significant improvements in managing its debt obligations.
Overall, the recent data suggests that Xerox Holdings Corp has been effectively managing its interest expenses, with a generally improving trend in its interest coverage ratio, reflecting a stronger financial position in terms of debt servicing capabilities.