Xylem Inc (XYL)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,350,000 | 4,647,000 | 3,438,000 | 3,220,000 | 3,046,000 |
| Inventory | US$ in thousands | 996,000 | 1,018,000 | 799,000 | 700,000 | 558,000 |
| Inventory turnover | 5.37 | 4.56 | 4.30 | 4.60 | 5.46 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,350,000K ÷ $996,000K
= 5.37
The inventory turnover ratio for Xylem Inc has shown some fluctuations over the past five years. Beginning at 5.46 in December 2020, it decreased to 4.60 by December 2021, indicating that the company took longer to sell its inventory compared to the previous year. The ratio further declined to 4.30 by December 2022, suggesting a potential buildup of inventory relative to sales.
However, there was a slight improvement in the inventory turnover ratio by December 2023, rising to 4.56, which may indicate more efficient management of inventory levels or increased sales volume during that period. The most recent data point, December 31, 2024, shows a notable increase in the inventory turnover ratio to 5.37, signaling that Xylem Inc was able to sell its inventory more frequently during that year.
Overall, while there have been fluctuations in the inventory turnover ratio for Xylem Inc, it is important to monitor trends over time to assess the company's effectiveness in managing its inventory levels and optimizing sales performance.
Peer comparison
Dec 31, 2024