Xylem Inc (XYL)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,511,000 | 8,331,000 | 7,949,000 | 7,364,000 | 6,752,000 | 6,056,000 | 5,698,000 | 5,522,000 | 5,339,000 | 5,224,000 | 5,211,000 | 5,195,000 | 5,245,000 | 5,200,000 | 5,009,000 | 4,876,000 | 4,874,000 | 4,950,000 | 5,135,000 | 5,249,000 |
| Receivables | US$ in thousands | 1,668,000 | 1,707,000 | 1,641,000 | 1,617,000 | 1,653,000 | 1,659,000 | 1,123,000 | 1,096,000 | 1,018,000 | 1,024,000 | 1,011,000 | 953,000 | 973,000 | 975,000 | 952,000 | 923,000 | 968,000 | 956,000 | 975,000 | 1,036,000 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,511,000K ÷ $1,668,000K
= 5.10
The receivables turnover ratio of Xylem Inc has shown some fluctuations over the past few quarters. From December 31, 2019, to June 30, 2021, the ratio ranged between 5.04 and 5.45, indicating that on average, Xylem collects its accounts receivable approximately 5 times a year. This suggests that the company is efficient in collecting payments from its customers within a reasonable time frame.
However, there was a slight decline in the receivables turnover ratio in the following quarters, dropping to 3.65 by June 30, 2023. This sudden decrease could be a cause for concern as it may indicate potential issues with the company's credit policies or difficulties in collecting receivables promptly.
Subsequently, the ratio improved to 5.10 by December 31, 2024, showing signs of recovery in the efficiency of Xylem's accounts receivable management. Overall, the trend of the receivables turnover ratio suggests that Xylem has been effective in managing its accounts receivable turnover, with occasional fluctuations that may warrant further investigation into the underlying reasons for the changes.
Peer comparison
Dec 31, 2024