Xylem Inc (XYL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,019,000 | 944,000 | 1,349,000 | 1,875,000 | 724,000 |
| Short-term investments | US$ in thousands | — | — | — | — | 0 |
| Total current liabilities | US$ in thousands | 2,205,000 | 1,590,000 | 1,391,000 | 1,956,000 | 1,501,000 |
| Cash ratio | 0.46 | 0.59 | 0.97 | 0.96 | 0.48 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,019,000K
+ $—K)
÷ $2,205,000K
= 0.46
The cash ratio of Xylem Inc has fluctuated over the past five years, as shown in the table below:
- Dec 31, 2023: 0.57
- Dec 31, 2022: 0.70
- Dec 31, 2021: 1.08
- Dec 31, 2020: 1.04
- Dec 31, 2019: 0.58
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Based on the data provided:
1. Xylem Inc's cash ratio was highest in 2021 at 1.08, indicating a relatively strong ability to cover short-term obligations with available cash and equivalents at that time.
2. The cash ratio decreased in 2022 and further in 2023 to 0.57, potentially signaling a lower ability to cover short-term liabilities with available cash in those years.
3. The cash ratio averages out at 0.79 over the five-year period, suggesting that Xylem Inc generally maintains a moderate ability to cover its short-term obligations with cash and cash equivalents.
Further analysis and comparison with industry benchmarks or historical trends may provide more insights into the company's liquidity position and cash management practices.
Peer comparison
Dec 31, 2023