Xylem Inc (XYL)
Working capital 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 |
| Total current assets | US$ in thousands | 4,098,000 | 4,013,000 | 3,893,000 | 3,884,000 | 3,651,000 | 3,735,000 | 3,010,000 | 3,012,000 | 3,191,000 | 3,174,000 | 3,118,000 | 3,160,000 | 3,057,000 | 3,623,000 | 3,401,000 | 3,523,000 | 3,311,000 | 3,301,000 | 2,462,000 | 2,450,000 |
| Total current liabilities | US$ in thousands | 2,336,000 | 2,052,000 | 2,331,000 | 2,205,000 | 2,120,000 | 2,282,000 | 1,494,000 | 1,590,000 | 1,929,000 | 1,951,000 | 1,920,000 | 1,391,000 | 1,314,000 | 1,959,000 | 1,844,000 | 1,956,000 | 1,280,000 | 1,373,000 | 1,584,000 | 1,501,000 |
| Working capital turnover | 4.83 | 4.25 | 5.09 | 4.39 | 4.41 | 4.17 | 3.76 | 3.88 | 4.23 | 4.27 | 4.35 | 2.94 | 3.01 | 3.12 | 3.22 | 3.11 | 2.40 | 2.57 | 5.85 | 5.53 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,511,000K ÷ ($4,098,000K – $2,336,000K)
= 4.83
The working capital turnover ratio of Xylem Inc has fluctuated over the years, indicating varying efficiency in utilizing its working capital. The ratio stood at 5.53 as of December 31, 2019, signaling that the company generated $5.53 in revenue for every dollar of working capital invested. This figure increased to 5.85 by March 31, 2020, suggesting improved efficiency during that period.
However, the ratio dropped to 2.40 by September 30, 2020, and further decreased to 2.57 by June 30, 2020, indicating a decline in the company's ability to generate revenue from its working capital. Xylem Inc then showed a slight improvement with a ratio of 3.11 by December 31, 2020, and 3.22 by March 31, 2021.
The ratio remained in the range of 3.01 to 4.35 from September 30, 2021, to March 31, 2022, reflecting fluctuating efficiency. Notably, the ratio peaked at 5.09 on March 31, 2024, suggesting that the company significantly enhanced its working capital turnover efficiency during that period.
Overall, Xylem Inc's working capital turnover has shown variability over the years, with some periods demonstrating stronger efficiency in utilizing working capital to generate revenue compared to others. Monitoring this ratio can provide insights into the company's operational efficiency and management of working capital.
Peer comparison
Dec 31, 2024