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Xerox Holdings Operating Income

: $415 Mil (TTM As of Mar. 2021)
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Xerox Holdings's Operating Income for the three months ended in Mar. 2021 was $74 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2021 was $415 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Xerox Holdings's Operating Income for the three months ended in Mar. 2021 was $74 Mil. Xerox Holdings's Revenue for the three months ended in Mar. 2021 was $1,710 Mil. Therefore, Xerox Holdings's Operating Margin % for the quarter that ended in Mar. 2021 was 4.33%.

Warning Sign:

Xerox Holdings Corp operating margin has been in 5-year decline. The average rate of decline per year is -5.8%.

Xerox Holdings's 5-Year average Growth Rate for Operating Margin % was -5.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Xerox Holdings's annualized ROC % for the quarter that ended in Mar. 2021 was 2.08%. Xerox Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 was 23.57%.


Xerox Holdings Operating Income Historical Data

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Xerox Holdings Annual Data
Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,148.00 1,080.00 1,045.00 1,147.00 417.00

Xerox Holdings Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.00 52.00 118.00 171.00 74.00

Xerox Holdings Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2021 was 52 (Jun. 2020 ) + 118 (Sep. 2020 ) + 171 (Dec. 2020 ) + 74 (Mar. 2021 ) = $415 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Xerox Holdings  (NYSE:XRX) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Xerox Holdings's annualized ROC % for the quarter that ended in Mar. 2021 is calculated as:

ROC % (Q: Mar. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2020 ) + Invested Capital (Q: Mar. 2021 ))/ count )
=296 * ( 1 - 26.42% )/( (10801 + 10167)/ 2 )
=217.7968/10484
=2.08 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

2. Joel Greenblatt's definition of Return on Capital:

Xerox Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2020  Q: Mar. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=308/( ( (1013 + max(-100, 0)) + (670 + max(930, 0)) )/ 2 )
=308/( ( 1013 + 1600 )/ 2 )
=308/1306.5
=23.57 %

where Working Capital is:

Working Capital(Q: Dec. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(834 + 843 + 222) - (1315 + 140 + 544)
=-100

Working Capital(Q: Mar. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1794 + 841 + 262) - (1726 + 0 + 241)
=930

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2021) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Xerox Holdings's Operating Margin % for the quarter that ended in Mar. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2021 )/Revenue (Q: Mar. 2021 )
=74/1710
=4.33 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Xerox Holdings Operating Income Related Terms


Xerox Holdings Operating Income Headlines

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