Xylem Inc (XYL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,647,000 | 3,438,000 | 3,220,000 | 3,046,000 | 3,203,000 |
| Inventory | US$ in thousands | 1,018,000 | 799,000 | 700,000 | 558,000 | 539,000 |
| Inventory turnover | 4.56 | 4.30 | 4.60 | 5.46 | 5.94 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $4,647,000K ÷ $1,018,000K
= 4.56
The inventory turnover ratio for Xylem Inc has been relatively stable over the past five years, ranging from 4.30 to 5.94. This ratio indicates the number of times Xylem Inc's inventory is sold and replaced within a given period. A higher inventory turnover generally suggests that the company is efficiently managing its inventory levels and selling products quickly.
In the case of Xylem Inc, the trend shows a slight decline in inventory turnover from 5.94 in 2019 to 4.56 in 2023. This may suggest that the company is holding inventory for a longer period before selling it. It could also indicate potential issues with inventory management, such as overstocking or slow-moving inventory.
Further analysis in conjunction with other financial metrics is recommended to fully understand the implications of Xylem Inc's inventory turnover trend and its impact on the company's overall operations and financial performance.
Peer comparison
Dec 31, 2023