Xylem Inc (XYL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,362,000 | 5,275,000 | 5,026,000 | 4,647,000 | 4,218,000 | 3,762,000 | 3,535,000 | 3,438,000 | 3,335,000 | 3,272,000 | 3,259,000 | 3,220,000 | 3,237,000 | 3,203,000 | 3,098,000 | 3,046,000 | 3,033,000 | 3,061,000 | 3,154,000 | 3,203,000 |
| Inventory | US$ in thousands | 996,000 | 1,091,000 | 1,039,000 | 1,018,000 | 1,080,000 | 1,143,000 | 857,000 | 799,000 | 837,000 | 852,000 | 804,000 | 700,000 | 679,000 | 642,000 | 596,000 | 558,000 | 582,000 | 595,000 | 573,000 | 539,000 |
| Inventory turnover | 5.38 | 4.84 | 4.84 | 4.56 | 3.91 | 3.29 | 4.12 | 4.30 | 3.98 | 3.84 | 4.05 | 4.60 | 4.77 | 4.99 | 5.20 | 5.46 | 5.21 | 5.14 | 5.50 | 5.94 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,362,000K ÷ $996,000K
= 5.38
The inventory turnover ratio of Xylem Inc has shown a gradual decline over the past few years, indicating a slower rate at which the company is converting its inventory into sales.
From December 31, 2019, where the inventory turnover ratio was 5.94, the ratio decreased to 3.84 by June 30, 2022. This trend suggests that Xylem Inc may be experiencing challenges in managing its inventory efficiently and may have excess or obsolete inventory on hand.
However, there was a slight improvement in the inventory turnover ratio by December 31, 2024, where it increased to 5.38. This improvement could indicate that Xylem Inc has made efforts to streamline its inventory management processes and optimize its inventory levels.
Overall, Xylem Inc should continue to monitor and analyze its inventory turnover ratio to ensure effective inventory management practices and to avoid potential issues related to excess inventory or liquidity challenges.
Peer comparison
Dec 31, 2024
Dec 31, 2024