Xylem Inc (XYL)
Payables 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 |
| Payables | US$ in thousands | 1,006,000 | 930,000 | 948,000 | 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 |
| Payables turnover | 5.33 | 5.67 | 5.30 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,362,000K ÷ $1,006,000K
= 5.33
The payables turnover ratio of Xylem Inc has shown some fluctuations over the period from December 31, 2019, to December 31, 2024. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times the company pays off its suppliers within a specific period.
Initially, the payables turnover ratio increased from 5.37 on December 31, 2019, to a peak of 6.23 on March 31, 2020, suggesting that Xylem was paying off its suppliers more frequently during this period. However, the ratio started to decline gradually to 5.04 by December 31, 2021, indicating that the company was taking more time to pay off its suppliers compared to the earlier periods.
A slight increase was observed in the payables turnover ratio by June 30, 2022, but it decreased again to 3.89 by June 30, 2023, which is a significant drop. This indicates that Xylem was taking longer to pay its suppliers during that specific quarter, potentially affecting relationships with suppliers or cash flow management.
The ratio recovered to 5.30 by March 31, 2024, showing an improvement in managing payables. Finally, by December 31, 2024, the payables turnover ratio stood at 5.33, indicating that Xylem was able to maintain a moderate level of efficiency in managing its accounts payable.
Overall, the trend of the payables turnover ratio for Xylem Inc indicates fluctuations in the efficiency of managing its payables during the period under review, with some periods showing more effective management than others.
Peer comparison
Dec 31, 2024