Xerox Corporation
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Xerox Corporation Financial Snapshot
Operating Performance
Fast Facts
45 Glover Avenue, NORWALK, 06856, The company reported revenue of US$22,626.00
Headquarters Address
United States of America million during the fiscal year 2011 (2011). The
company's revenue grew at a CAGR of 7.05% during
Telephone + 12039683000
2007–2011, with an annual growth of 4.59% over
2010. In 2011, the company recorded an operating
Fax + 12039683218 margin of 6.92%, as against 3.77% in 2010.
Website www.xerox.com
Revenue and Margins
Ticker Symbol, Stock Exchange BCX, Johannesburg Stock Exchange
Number of Employees 139,650
Fiscal Year End December
Revenue (in US$ million) 22,626.00
SWOT Analysis
Strengths Weaknesses Return on Equity
Broad business portfolio Decrease in cash position The company recorded a return on equity (ROE) of
10.59% for 2011, as compared to its peers, Hewlett-
Packard Company (Ticker: HPQ), Canon Inc. (Ticker:
Focus on research and development Dependence on domestic market 7751) and Konica Minolta Holdings, Inc. (Ticker:
4902), which recorded ROEs of 18.31%, 9.75% and
Inorganic growth strategy 6.05% respectively. The company reported an
operating margin of 6.92% in 2011.
Opportunities Threats
Return on Equity
New contract wins Changing technology
New product launches Foreign exchange risks
Strategic acquisitions Growing trend of paperless work
Rising labor wages
Liquidity Position
The company reported a current ratio of 1.24 in 2011,
as compared to its peers, Hewlett-Packard Company,
Canon Inc. and Konica Minolta Holdings, Inc., which
recorded current ratios of 1.01, 2.41 and 2.07
respectively. As of December 2011, the company
recorded cash and short-term investments of worth
US$902.00 million, against US$1,445.00 million
current debt. The company reported a debt to equity
ratio of 0.71 in 2011 as compared to its peers,
Hewlett-Packard Company, Canon Inc. and Konica
Minolta Holdings, Inc., which recorded debt to equity
ratios of 0.79, 0.01 and 0.45 respectively.
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Xerox Corporation - SWOT Profile Page 1
Xerox Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................7
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
2.2 Key Financial Performance Indicators .................................................................................................................11
2.2.1 Revenue and Operating Profit .........................................................................................................................11
2.2.2 Asset, Liabilities and Capex .............................................................................................................................12
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................13
2.2.4 Operational Efficiency ......................................................................................................................................14
2.2.5 Solvency ..........................................................................................................................................................15
2.2.6 Valuation ..........................................................................................................................................................16
2.3 Competitive Benchmarking ..................................................................................................................................17
2.3.1 Market Capitalization .......................................................................................................................................17
2.3.2 Efficiency ..........................................................................................................................................................18
2.3.3 Capital Expenditure ..........................................................................................................................................19
2.3.4 Valuation ..........................................................................................................................................................20
2.3.5 Turnover – Inventory and Asset .......................................................................................................................21
2.3.6 Liquidity ............................................................................................................................................................22
3 Recent Developments ........................................................................................................................... 23
4 SWOT Analysis ...................................................................................................................................... 25
4.1 SWOT Analysis - Overview ..................................................................................................................................25
4.2 Strengths ..............................................................................................................................................................25
4.3 Weaknesses .........................................................................................................................................................26
4.4 Opportunities ........................................................................................................................................................26
4.5 Threats ...................................