Xylem Inc (XYL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 3,213,000 | 3,208,000 | 3,187,000 |
| Inventory | US$ in thousands | 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 | 580,000 | 604,000 | 617,000 |
| Inventory turnover | 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 | 5.54 | 5.31 | 5.17 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,647,000K ÷ $1,018,000K
= 4.56
Based on the data provided, Xylem Inc's inventory turnover has shown some fluctuations over the past eight quarters. The inventory turnover ratios range from a low of 3.29 in Q2 2023 to a high of 4.56 in Q4 2023. Overall, the inventory turnover ratios for Xylem Inc have been relatively stable, with values consistently above 3.8.
A high inventory turnover ratio indicates that Xylem Inc is effectively selling its inventory and restocking it quickly. This is generally a positive sign as it suggests efficient inventory management and effective sales strategies. On the other hand, a low inventory turnover ratio could indicate issues such as overstocking or slow-moving inventory, which may tie up resources and lead to potential obsolescence.
The fluctuations in the inventory turnover ratios should be further analyzed to understand the underlying reasons behind the changes. For instance, a decrease in inventory turnover could be due to a decrease in sales or production issues, while an increase could indicate improved demand or more efficient inventory management practices.
In conclusion, Xylem Inc's inventory turnover ratios suggest generally efficient management of inventory levels, but further investigation into the factors driving the fluctuations in the ratios would provide more insight into the company's inventory management practices.
Peer comparison
Dec 31, 2023
Dec 31, 2023