Xylem Inc (XYL)
Working capital 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 current assets | US$ in thousands | 3,884,000 | 3,012,000 | 3,160,000 | 3,523,000 | 2,450,000 |
| Total current liabilities | US$ in thousands | 2,205,000 | 1,590,000 | 1,391,000 | 1,956,000 | 1,501,000 |
| Working capital turnover | 4.39 | 3.88 | 2.94 | 3.11 | 5.53 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,364,000K ÷ ($3,884,000K – $2,205,000K)
= 4.39
Xylem Inc's working capital turnover has exhibited fluctuating trends over the past five years. The ratio has ranged from a low of 2.94 in 2021 to a high of 5.53 in 2019. This indicates that, on average, Xylem Inc is generating $4.39 in net sales revenue for every dollar invested in working capital in 2023. Generally, a higher working capital turnover ratio suggests that the company is efficiently managing its working capital to generate sales. However, the downward trend seen in 2021 could indicate potential inefficiencies in working capital management during that period. It is crucial for the company to closely monitor and improve its working capital turnover ratio to ensure optimal utilization of resources and financial health.
Peer comparison
Dec 31, 2023