Case 4.5 Xerox Corporation Case Solution
This case is about Business
- Comparing HP’s items to Xerox’s, one can observe that HP provided a wide array and series of items whereas Xerox supplied more depth with regards to print and copy product. While comparing monetary ratios of the two business for the year 2000, the list below ratios plainly stood apart: HP had a return on equity of 0.23, while Xerox’s profit on equity was -.09. An unfavorable return on equity would be very disconcerting. HP’s earnings margin was.08 while Xerox’s was -.02; another disconcerting figure. Although the books made it appear like Xerox had more monetary utilize and a much better present ratio, the case described why that was not the case nevertheless, thinking about the defect in Xerox’s financials. Another crucial element to think about is that HP was reporting favorable capital, while Xerox was not. The distinction in reported profits versus capital must have likewise raised a significant warning until Xerox’s financials.