Xylem Inc (XYL)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,511,000 | 8,331,000 | 7,949,000 | 7,364,000 | 6,752,000 | 6,056,000 | 5,698,000 | 5,522,000 | 5,339,000 | 5,224,000 | 5,211,000 | 5,195,000 | 5,245,000 | 5,200,000 | 5,009,000 | 4,876,000 | 4,874,000 | 4,950,000 | 5,135,000 | 5,249,000 |
| Property, plant and equipment | US$ in thousands | 1,152,000 | 1,158,000 | 1,141,000 | 1,169,000 | 1,132,000 | 1,144,000 | 631,000 | 630,000 | 585,000 | 608,000 | 636,000 | 644,000 | 618,000 | 626,000 | 627,000 | 657,000 | 633,000 | 635,000 | 628,000 | 658,000 |
| Fixed asset turnover | 7.39 | 7.19 | 6.97 | 6.30 | 5.96 | 5.29 | 9.03 | 8.77 | 9.13 | 8.59 | 8.19 | 8.07 | 8.49 | 8.31 | 7.99 | 7.42 | 7.70 | 7.80 | 8.18 | 7.98 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,511,000K ÷ $1,152,000K
= 7.39
The fixed asset turnover ratio of Xylem Inc has exhibited fluctuations over the period under review. The ratio increased steadily from 7.98 as of December 31, 2019, reaching a peak of 9.13 as of September 30, 2022. This indicates that Xylem was generating more revenue per dollar of fixed assets invested during those periods.
However, there was a notable decline in the fixed asset turnover ratio in the subsequent quarters, with the ratio dropping to 5.29 as of June 30, 2023, before gradually recovering. The decrease in the ratio suggests a potential inefficiency in utilizing the fixed assets during that particular quarter.
Overall, despite some fluctuations, Xylem Inc generally maintained a relatively high fixed asset turnover ratio, indicating efficient utilization of fixed assets to generate sales revenue. It is important for the company to closely monitor this ratio to ensure optimal utilization of its fixed assets for continued operational effectiveness and profitability.
Peer comparison
Dec 31, 2024