Xylem Inc (XYL)
Payables 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 |
| Payables | US$ in thousands | 968,000 | 943,000 | 968,000 | 710,000 | 723,000 | 618,000 | 648,000 | 652,000 | 639,000 | 577,000 | 599,000 | 530,000 | 569,000 | 495,000 | 498,000 | 506,000 | 597,000 | 521,000 | 539,000 | 548,000 |
| Payables turnover | 4.80 | 4.47 | 3.89 | 4.98 | 4.76 | 5.40 | 5.05 | 5.00 | 5.04 | 5.61 | 5.35 | 5.85 | 5.35 | 6.13 | 6.15 | 6.23 | 5.37 | 6.17 | 5.95 | 5.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,647,000K ÷ $968,000K
= 4.80
The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance during a specific period.
In the case of Xylem Inc, we observe fluctuations in the payables turnover ratio over the past eight quarters. The trend shows a general consistency in the range of 4.47 to 5.40, indicating that Xylem Inc has been relatively effective in managing its payables during this period.
A higher payables turnover ratio suggests that the company is paying off its suppliers more quickly, which could signify good relationships with suppliers or efficient working capital management. Conversely, a lower ratio could indicate longer payment periods or potential liquidity issues.
In Q3 2023, the payables turnover ratio decreased to 4.47 from 4.80 in Q4 2023, which may suggest a slight slowdown in the company's payables management efficiency during that specific quarter. However, it is important to consider the overall consistency in the ratio range over the past quarters for a more comprehensive assessment of Xylem Inc's payables management performance.
Peer comparison
Dec 31, 2023