Xylem Inc (XYL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,364,000 | 5,522,000 | 5,195,000 | 4,876,000 | 5,249,000 |
| Total assets | US$ in thousands | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 | 7,710,000 |
| Total asset turnover | 0.46 | 0.69 | 0.63 | 0.56 | 0.68 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,364,000K ÷ $16,112,000K
= 0.46
Xylem Inc's total asset turnover has shown a fluctuating trend over the past five years. In 2023, the total asset turnover ratio decreased to 0.46 from 0.69 in 2022. This suggests that for every dollar of total assets, Xylem generated $0.46 in revenue in 2023, down from $0.69 in 2022.
The decrease in total asset turnover could indicate inefficiency in utilizing its assets to generate sales. This could be due to various factors such as slower sales growth, ineffective asset management, or increased levels of assets. It is important for Xylem to analyze the reasons behind this decline and take necessary steps to improve asset utilization efficiency in order to enhance overall business performance.
Peer comparison
Dec 31, 2023