Xylem Inc (XYL)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,264,000 | 5,255,000 | 5,227,000 |
| Property, plant and equipment | US$ in thousands | 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 | 641,000 | 661,000 | 653,000 |
| Fixed asset turnover | 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 | 8.21 | 7.95 | 8.00 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,364,000K ÷ $1,169,000K
= 6.30
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets.
Based on the data provided for Xylem Inc, we observe fluctuations in the fixed asset turnover ratio over the past eight quarters. In Q4 2023, the fixed asset turnover stood at 6.30, which indicates that for every dollar invested in fixed assets, Xylem Inc generated $6.30 in revenue during that period. This ratio decreased compared to the previous quarter but remained relatively high.
The trend in fixed asset turnover for Xylem Inc shows some variability, with fluctuations from 5.29 in Q2 2023 to 9.03 in Q1 2023. This variability may be attributed to changes in the company's revenue generation or the management of its fixed assets. Overall, the company appears to have been effectively utilizing its fixed assets to generate revenue, with the ratio consistently above 5.
It would be beneficial for Xylem Inc to continue monitoring its fixed asset turnover ratio to ensure that it remains at a satisfactory level and to identify any potential areas for improvement in asset management efficiency.
Peer comparison
Dec 31, 2023