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Xerox Holdings Financial Strength

: 5 (As of Jun. 2022)
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Xerox Holdings has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Xerox Holdings's Interest Coverage for the quarter that ended in Jun. 2022 was 0.17. Xerox Holdings's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.55. As of today, Xerox Holdings's Altman Z-Score is 1.31.


Competitive Comparison

For the Information Technology Services subindustry, Xerox Holdings's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Software industry and Technology sector, Xerox Holdings's Financial Strength distribution charts can be found below:

* The bar in red indicates where Xerox Holdings's Financial Strength falls into.



Xerox Holdings Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Xerox Holdings's Interest Expense for the months ended in Jun. 2022 was $-23 Mil. Its Operating Income for the months ended in Jun. 2022 was $4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,764 Mil.

Xerox Holdings's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*4/-23
=0.17

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Xerox Holdings's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1108 + 2764) / 6988
=0.55

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Xerox Holdings has a Z-score of 1.31, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.31 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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  (NAS:XRX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Xerox Holdings has the Financial Strength Rank of 5.


Xerox Holdings Financial Strength Related Terms

Thank you for viewing the detailed overview of Xerox Holdings's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Xerox Holdings Business Description

Xerox Holdings logo
Address
201 Merritt 7, P.O. Box 4505, Norwalk, CT, USA, 06851-1056
Xerox 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
Gecaj Mirlanda officer: VP & CAO XEROX HOLDINGS CORPORATION 201 MERRITT 7 NORWALK CT 06851
Heiss Xavier officer: EVP and CFO XEROX CORPORATION 201 MERRITT 7 NORWALK CT 06851
Morno-wade Suzan officer: EVP & CHRO XEROX CORPORATION 201 MERRITT 7 NORWALK CT 06851-1056
Feldman Michael David officer: Executive Vice President 45 GLOVER AVENUE P.O. BOX 4505 NORWALK CT 06856-4505
Mancini Joseph H. officer: VP & Chief Accounting Officer 45 GLOVER AVENUE NORWALK CT 06856
Bandrowczak Steven John officer: President and COO C/O NORTEL NETWORKS CORPORATION 195 THE WEST MALL TORONTO A6 M9C 5K1
Visentin Giovanni director, officer: Vice Chairman & CEO C/O HEWLETT-PACKARD COMPANY 3000 HANOVER STREET PALO ALTO CA 94304
Pastor Louis officer: EVP, CCDO and CLO C/O XEROX CORPORATION 201 MERRITT 7 NORWALK CT 06851
Collins Smee Joanne officer: Executive Vice President XEROX CORPORATION 201 MERRITT 7 NORWALK CT 06851
Gueden Jacques-edouard officer: Executive Vice President XEROX CORPORATION 201 MERRITT 7 NORWALK CT 06851
Lynn Jesse director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Icahn Carl C 10 percent owner C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH-1 SUNNY ISLES BEACH FL 33160
Icahn Partners Master Fund Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Icahn Partners Lp 10 percent owner 16690 COLLINS AVE. PH SUNNY ISLES FL 33160
Palau Hernandez Margarita director 300 N. SAN RAFAEL AVE. PASADENA CA 91105

Xerox Holdings Headlines

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