Xylem Inc (XYL)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 2,263,000 | 2,258,000 | 2,081,000 |
| Total current liabilities | US$ in thousands | 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 | 1,461,000 | 1,537,000 | 1,441,000 |
| Working capital turnover | 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 | 6.56 | 7.29 | 8.17 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,364,000K ÷ ($3,884,000K – $2,205,000K)
= 4.39
Xylem Inc's working capital turnover has shown varying levels over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. The higher the ratio, the more efficiently the company is managing its working capital.
In Q4 2023, the working capital turnover ratio was 4.39, indicating that Xylem Inc generated approximately $4.39 in revenue for every dollar of working capital invested. This ratio was slightly lower than the previous quarter's ratio of 4.41.
Although the working capital turnover ratio fluctuated from quarter to quarter, it generally remained above 4, reflecting good efficiency in managing working capital throughout the periods analyzed. The company's ability to turn its working capital into revenue has been consistent and effective, with slight variations reflecting changes in the company's operations and financial performance.
Peer comparison
Dec 31, 2023