Xylem Inc (XYL)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 5,264,000 | 5,255,000 | 5,227,000 |
| Receivables | US$ in thousands | 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 | 1,078,000 | 1,096,000 | 1,020,000 |
| Receivables turnover | 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 | 4.88 | 4.79 | 5.12 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,364,000K ÷ $1,617,000K
= 4.55
The receivables turnover ratio of Xylem Inc has been fluctuating over the past eight quarters, ranging from a low of 3.65 in Q2 2023 to a high of 5.24 in Q3 2022. This ratio measures how efficiently the company is able to collect its accounts receivable during a given period. A higher receivables turnover ratio indicates that the company is able to collect its outstanding receivables more quickly.
The trend of the receivables turnover ratio for Xylem Inc has been somewhat inconsistent, with no clear upward or downward pattern. It is essential for the company to monitor this ratio closely and identify any potential issues that may be affecting the collection of accounts receivable.
While a high receivables turnover ratio is generally considered favorable as it suggests efficient collection practices, an excessively high ratio may indicate a very low credit policy that could potentially be negatively impacting sales. On the other hand, a low receivables turnover ratio may signal potential issues with collecting outstanding debts.
Overall, Xylem Inc should continue to assess its receivables turnover ratio in conjunction with other financial metrics to gain a comprehensive understanding of its overall financial health and effectiveness in managing its accounts receivable.
Peer comparison
Dec 31, 2023