DXC Technology Co key statistics and ratios
In fiscal 2026, DXC Technology Co had return on equity of 0.6%, an operating margin of 7.7%, debt equal to 120.8% of equity and a current ratio of 1.36. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2016Apr 2016 | 2017Mar 2017 | 2018Mar 2018 | 2019Mar 2019 | 2020Mar 2020 | 2021Mar 2021 | 2022Mar 2022 | 2023Mar 2023 | 2024Mar 2024 | 2025Mar 2025 | 2026Mar 2026 | LTMSept 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating margin | 5.7% | 8.1% | 13.8% | 15.8% | 10.5% | 6.2% | 8.5% | 7.9% | 7.4% | 7.9% | 7.7% | 6.8% |
| Net margin | 3.5% | −1.6% | 8.1% | 6.1% | −27.4% | −0.8% | 4.4% | −3.9% | 0.7% | 3.0% | 0.1% | 0.9% |
| Free-cash-flow margin | 6.3% | 4.9% | 10.8% | 7.2% | 10.2% | −0.8% | 7.7% | 8.0% | 8.6% | 8.9% | 8.2% | 8.3% |
| Return on equity | 12.4% | −6.3% | 22.8% | 10.1% | −66.3% | −3.1% | 14.3% | −13.3% | 2.9% | 12.9% | 0.6% | 3.7% |
| Return on assets | 3.2% | −1.5% | 8.2% | 4.0% | −19.3% | −0.6% | 3.4% | −3.2% | 0.6% | 2.9% | 0.1% | 0.9% |
| Asset turnover | 0.92 | 0.93 | 1.02 | 0.65 | 0.70 | 0.74 | 0.77 | 0.80 | 0.92 | 0.95 | 0.97 | 0.98 |
| Current ratio | — | 1.10 | 0.98 | 0.96 | 1.14 | 1.01 | 1.09 | 1.18 | 1.17 | 1.22 | 1.36 | 1.15 |
| Debt to equity | 0.0% | 156.9% | 59.4% | 65.0% | 207.9% | 110.8% | 98.3% | 125.8% | 145.5% | 120.0% | 120.8% | 100.1% |
| Interest cover (operating income ÷ interest) | 3.3x | 5.3x | 9.3x | 9.8x | 5.4x | 3.1x | 6.7x | 5.7x | 3.4x | 3.8x | 4.5x | 3.8x |
| Effective tax rate | — | — | −18.6% | 19.0% | — | — | 35.5% | — | 21.1% | 37.1% | 91.2% | 73.7% |
| SG&A as % of revenue | 14.9% | 16.9% | 8.7% | 9.4% | 10.5% | 11.7% | 8.7% | 9.5% | 9.1% | 10.5% | 11.1% | 10.4% |
| Capital spending as % of revenue | 5.0% | 3.2% | 1.0% | 1.4% | 1.8% | 1.5% | 1.6% | 1.9% | 1.3% | 1.9% | 1.7% | 2.1% |
| Free cash flow ÷ net income | 177.7% | — | 133.8% | 118.2% | — | — | 173.7% | — | >999% | 295.6% | >999% | 919.6% |
| Dividends ÷ net income | 171.3% | — | 9.9% | 16.7% | — | — | 0.0% | — | — | — | — | — |
| Dividends and buybacks ÷ free cash flow | 112.8% | 20.9% | 13.1% | 104.6% | 47.5% | — | 50.4% | 58.3% | 76.2% | 1.2% | 24.0% | 25.0% |
| Quarter | 2025 Q3Dec 2024 | 2025 Q4Mar 2025 | 2026 Q1Jun 2025 | 2026 Q2Sept 2025 | 2026 Q3Dec 2025 | 2026 Q4Mar 2026 | 2027 Q1Jun 2026 | 2027 Q2Sept 2026 |
|---|---|---|---|---|---|---|---|---|
| Operating margin | 8.9% | 7.3% | 6.8% | 8.0% | 8.2% | 7.6% | 5.0% | 6.2% |
| Net margin | 1.8% | 8.3% | 0.5% | 1.1% | 3.4% | −4.5% | 4.1% | 0.8% |
| Free-cash-flow margin | 17.6% | 7.5% | 4.5% | 11.5% | 11.2% | 5.4% | 12.0% | 4.7% |
| Current ratio | 1.34 | 1.22 | 1.22 | 1.09 | 1.35 | 1.36 | 1.41 | 1.15 |
| Debt to equity | 128.1% | 92.8% | 97.9% | 77.2% | 98.3% | 103.1% | 98.2% | 69.5% |
| SG&A as % of revenue | 10.4% | 11.3% | 12.5% | 11.6% | 9.7% | 10.6% | 10.9% | 10.5% |
Financial health
- Short-term assets cover short-term liabilities $5.0bn of assets due within a year against $4.3bn of liabilities due within a year.
- Short-term assets cover long-term liabilities $5.0bn short-term assets against $4.5bn of longer-dated liabilities.
- More cash than debt $1.6bn of cash against $2.1bn of debt.
- Debt below 40% of shareholders' equity Debt is 69% of equity.
- Debt burden no higher than five years ago Debt to equity moved from 80% to 69% over five years.
- A year's operating cash flow covers at least 20% of debt $1.3bn of operating cash flow against $2.1bn of debt.
- Operating profit covers interest at least five times over Operating income of $837m against $221m of interest.
Moat
Weak moat
How hard DXC Technology's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 0 / 20
Net income has been a median 0.8% of total assets over 10 years.
- Durability 11 / 20
Operating margin has been a median 7.8%; its worst year was 6.8%.
- Cash conversion 12 / 20
Free cash flow was positive in 8 of 10 years, at a median 8.4% of revenue.
- Discipline 20 / 20
The diluted share count fell 33.6% over five years; stock-based pay has been a median 0.6% of revenue.
AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (54 before it).
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