Xerox Holdings (Xerox Holdings) Gross Margin %

: 33.54% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Xerox Holdings's Gross Profit for the three months ended in Dec. 2023 was $592 Mil. Xerox Holdings's Revenue for the three months ended in Dec. 2023 was $1,765 Mil. Therefore, Xerox Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 33.54%.

Warning Sign:

Xerox Holdings Corp gross margin has been in long-term decline. The average rate of decline per year is -4.5%.

The historical rank and industry rank for Xerox Holdings's Gross Margin % or its related term are showing as below:

XRX' s Gross Margin % Range Over the Past 10 Years
Min: 32.62 Med: 39.97 Max: 40.75
Current: 33.6

During the past 13 years, the highest Gross Margin % of Xerox Holdings was 40.75%. The lowest was 32.62%. And the median was 39.97%.

XRX's Gross Margin % is ranked worse than
60.97% of 2629 companies
in the Software industry
Industry Median: 41.74 vs XRX: 33.60

Xerox Holdings had a gross margin of 33.54% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Xerox Holdings was -4.50% per year.

Xerox Holdings Gross Margin % Historical Data

The historical data trend for Xerox Holdings's Gross Margin % can be seen below:

* 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

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

40.26

37.40

34.14

32.62

33.60

Xerox Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %																34.78	34.34	34.04	32.45	33.54

Competitive Comparison

For the Information Technology Services subindustry, Xerox Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Xerox Holdings Gross Margin % Distribution

For the Software industry and Technology sector, Xerox Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Xerox Holdings's Gross Margin % falls into.

Xerox Holdings Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Xerox Holdings's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	2314	/	6886
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6886 - 4572)	/	6886
	=	33.60 %

Xerox Holdings's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	592	/	1765
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1765 - 1173)	/	1765
	=	33.54 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Xerox Holdings (NAS:XRX) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Xerox Holdings had a gross margin of 33.54% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Xerox Holdings Gross Margin % Related Terms

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Xerox Holdings (Xerox Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Xerox Holdings Corp (NAS:XRX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

XER2:Germany XER2:Germany XRXB34:Brazil XRX:Argentina

Address

201 Merritt 7, P.O. Box 4505, Norwalk, CT, USA, 06851-1056

Website

https://www.xerox.com

Xerox Holdings Corp is an original equipment manufacturing and software company. Xerox operates in one segment--design, development, and sale of printing technology and related solutions--while deriving 60% of its revenue from the U.S. and 40% from international markets. The company is an OEM of multifunction printers, or MFPs (printers that can print, copy, and scan), focusing on large enterprise markets. Apart from equipment, the company provides post-sales services like managed print services--a service that helps to bring smart servicing and efficiencies to how employers use their print/copy equipment. Xerox is attempting to enter new markets like digital print packaging solutions and printed electronics.

Executives

Carl C Icahn	10 percent owner	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Darwin Deason	10 percent owner	2828 N HASKELL AVENUE, BLDG 1 FL-10, DALLAS TX 75204
Suzan Morno-wade	officer: EVP & CHRO	XEROX CORPORATION, 201 MERRITT 7, NORWALK CT 06851-1056
Steven John Bandrowczak	officer: President and COO	C/O NORTEL NETWORKS CORPORATION, 195 THE WEST MALL, TORONTO A6 M9C 5K1
Mirlanda Gecaj	officer: VP & CAO	XEROX HOLDINGS CORPORATION, 201 MERRITT 7, NORWALK CT 06851
Philip Giordano	director	100 EAST DILDO DRIVE, MIAMI BEACH FL 33139
A. Scott Letier	director	5956 SHERRY LN, SUITE 800, DALLAS TX 75225
Jesse Lynn	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Nichelle Maynard-elliott	director	PLATFORM SPECIALTY PRODUCTS CORPORATION, 383 MAIN AVENUE, NORWALK CT 06851
Hernandez Margarita Palau	director	300 N. SAN RAFAEL AVE., PASADENA CA 91105
Steven D Miller	director	16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160
James Larry Nelson	director	2747 PARADISE ROAD, PH2804, LAS VEGAS NV 89109
Jacques-edouard Gueden	officer: Executive Vice President	XEROX CORPORATION, 201 MERRITT 7, NORWALK CT 06851
John G Bruno	officer: President and COO
Naresh Shanker	officer: SVP, Chief Technology Officer	XEROX CORPORATION, 201 MERRITT 7, NORWALK CT 06851