Xylem Inc (XYL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,562,000 | 7,364,000 | 5,522,000 | 5,195,000 | 4,876,000 |
| Total current assets | US$ in thousands | 4,098,000 | 3,884,000 | 3,012,000 | 3,160,000 | 3,523,000 |
| Total current liabilities | US$ in thousands | 2,336,000 | 2,205,000 | 1,590,000 | 1,391,000 | 1,956,000 |
| Working capital turnover | 4.86 | 4.39 | 3.88 | 2.94 | 3.11 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,562,000K ÷ ($4,098,000K – $2,336,000K)
= 4.86
Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Xylem Inc, the working capital turnover has shown a fluctuating trend over the recent years.
- In 2020, the company's working capital turnover was 3.11, indicating that for every dollar of working capital, Xylem generated $3.11 in sales.
- In 2021, the ratio decreased slightly to 2.94, suggesting a lower level of efficiency in utilizing working capital to generate revenue.
- However, there was a significant improvement in 2022, with the ratio increasing to 3.88, indicating that Xylem was able to enhance its efficiency in this aspect.
- The trend continued to improve in 2023 and 2024, with the working capital turnover ratios reaching 4.39 and 4.86 respectively. This indicates that Xylem was able to generate even more sales revenue for each dollar of working capital invested.
Overall, the increasing trend in the working capital turnover ratios for Xylem Inc shows a positive sign of improving efficiency in utilizing its working capital to generate sales revenue, which is crucial for sustainable growth and profitability.
Peer comparison
Dec 31, 2024