Xylem Inc (XYL)

Payables 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
Payables	US$ in thousands	968,000	723,000	639,000	569,000	597,000
Payables turnover		4.80	4.76	5.04	5.35	5.37

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,647,000K ÷ $968,000K
= 4.80

The payables turnover ratio for Xylem Inc has shown a decreasing trend from 5.37 in 2019 to 4.80 in 2023. This indicates that the company is taking longer to pay its suppliers compared to previous years. A lower payables turnover ratio could suggest either a deterioration in the company's liquidity position or a change in its payment terms with suppliers. It may be essential for Xylem Inc to assess its payables management processes to ensure optimal cash flow management and maintain healthy supplier relationships.

Peer comparison

Dec 31, 2023

Company name

Symbol

Payables turnover

Xylem Inc

XYL

4.80

Enovis Corp

ENOV

13.72

Flowserve Corporation