Xylem Inc (XYL)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 5.10 | 4.88 | 4.84 | 4.55 | 4.08 | 3.65 | 5.07 | 5.04 | 5.24 | 5.10 | 5.15 | 5.45 | 5.39 | 5.33 | 5.26 | 5.28 | 5.04 | 5.18 | 5.27 | 5.07 |
| 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 |
| Working capital turnover | 4.83 | 4.25 | 5.09 | 4.39 | 4.41 | 4.17 | 3.76 | 3.88 | 4.23 | 4.27 | 4.35 | 2.94 | 3.01 | 3.12 | 3.22 | 3.11 | 2.40 | 2.57 | 5.85 | 5.53 |
Xylem Inc's inventory turnover ratio has been decreasing steadily from 5.94 on December 31, 2019, to 5.38 on December 31, 2024. This suggests that the company is taking longer to sell its inventory over the years, which could indicate issues with demand or inventory management.
The receivables turnover ratio has shown some fluctuations but has generally been stable, ranging from 5.04 on December 31, 2022, to 5.45 on December 31, 2021. A consistent or improving receivables turnover ratio is positive, indicating that Xylem is efficient in collecting on credit sales.
In terms of payables turnover, the ratio has been relatively stable, ranging from 4.76 on December 31, 2022, to 6.23 on March 31, 2020. A consistent payables turnover ratio indicates that Xylem is managing its trade payables effectively.
The working capital turnover ratio has varied over the years, with a high of 5.85 on March 31, 2020, and a low of 2.40 on September 30, 2020. A higher working capital turnover ratio signifies more efficient utilization of working capital in generating sales revenue.
Overall, Xylem Inc's activity ratios suggest that the company may have issues with inventory management efficiency, but appears to be generally effective in managing receivables, payables, and working capital turnover.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.80 | 75.49 | 75.45 | 79.96 | 93.46 | 110.90 | 88.49 | 84.83 | 91.61 | 95.04 | 90.05 | 79.35 | 76.56 | 73.16 | 70.22 | 66.86 | 70.04 | 70.95 | 66.31 | 61.42 |
| Days of sales outstanding (DSO) | days | 71.53 | 74.79 | 75.35 | 80.15 | 89.36 | 99.99 | 71.94 | 72.44 | 69.60 | 71.55 | 70.81 | 66.96 | 67.71 | 68.44 | 69.37 | 69.09 | 72.49 | 70.49 | 69.30 | 72.04 |
| Number of days of payables | days | 68.48 | 64.35 | 68.85 | 76.03 | 81.60 | 93.92 | 73.31 | 76.76 | 67.64 | 72.29 | 73.02 | 72.43 | 65.06 | 68.26 | 62.44 | 68.18 | 59.57 | 59.38 | 58.56 | 68.03 |
Xylem Inc's activity ratios provide insight into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH) have shown fluctuations over the years, ranging from 61.42 days to 110.90 days. The trend suggests that Xylem's inventory management has been somewhat volatile, with higher DOH in recent periods indicating a potential buildup of unsold inventory which may lead to increased carrying costs.
2. Days of Sales Outstanding (DSO) have varied between 66.96 days to 99.99 days. A decreasing trend in DSO is generally favorable as it indicates that the company is collecting its accounts receivable more quickly. However, the spike in DSO in June 2023 might be a cause for concern, suggesting potential issues with credit policies or collection efforts.
3. Number of Days of Payables ranges from 58.56 days to 93.92 days. A lower number of days of payables indicates that the company is taking longer to pay its suppliers, which may strain relationships or indicate cash flow issues. However, the fluctuations observed in this ratio may also be influenced by the company's negotiation practices with suppliers.
Overall, Xylem Inc should closely monitor its activity ratios to ensure efficient management of inventory, collections, and payables to optimize working capital and operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.39 | 7.19 | 6.97 | 6.30 | 5.96 | 5.29 | 9.03 | 8.77 | 9.13 | 8.59 | 8.19 | 8.07 | 8.49 | 8.31 | 7.99 | 7.42 | 7.70 | 7.80 | 8.18 | 7.98 |
| Total asset turnover | 0.52 | 0.52 | 0.50 | 0.46 | 0.42 | 0.38 | 0.72 | 0.69 | 0.66 | 0.64 | 0.63 | 0.63 | 0.64 | 0.59 | 0.59 | 0.56 | 0.58 | 0.59 | 0.68 | 0.68 |
Xylem Inc's long-term activity ratios show varying trends over the years. The Fixed Asset Turnover ratio has generally shown an increasing trend from December 2019 to June 2023, peaking at 9.13 in September 2022 before declining to 7.39 by December 2024. This ratio reflects the company's efficiency in generating sales from its fixed assets.
On the other hand, the Total Asset Turnover ratio has fluctuated over the same period, starting at 0.68 in December 2019, dipping to a low of 0.38 in June 2023, and then gradually recovering to 0.52 by December 2024. This ratio indicates how well the company utilizes its total assets to generate revenue.
Overall, the Fixed Asset Turnover ratio suggests that Xylem Inc has been successful in optimizing the use of its fixed assets to generate sales, while the Total Asset Turnover ratio highlights fluctuations in the company's ability to efficiently utilize all its assets to drive revenue. Continued monitoring of these ratios will be important to assess the company's operational efficiency and asset utilization in the long term.