Xylem Inc (XYL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,019,000 | 705,000 | 708,000 | 837,000 | 944,000 | 1,186,000 | 1,113,000 | 1,117,000 | 1,349,000 | 1,255,000 | 1,840,000 | 1,688,000 | 1,875,000 | 1,402,000 | 1,577,000 | 739,000 | 724,000 | 453,000 | 383,000 | 275,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 200,000 | — | — | 0 | — | — | — |
| 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 |
| Cash ratio | 0.46 | 0.33 | 0.31 | 0.56 | 0.59 | 0.61 | 0.57 | 0.58 | 0.97 | 0.96 | 0.94 | 0.92 | 0.96 | 1.25 | 1.15 | 0.47 | 0.48 | 0.31 | 0.25 | 0.19 |
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 shown some fluctuations over the past eight quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio was 0.57, indicating that Xylem had $0.57 in cash and cash equivalents for every $1 of current liabilities. This suggests that the company had a slightly lower liquidity position compared to the previous quarter.
Looking back at the trend, the cash ratio has generally been above 0.40, indicating that Xylem has maintained a healthy level of liquidity during the period analyzed. However, it is worth noting that the ratio experienced a significant decrease in Q2 2023 to 0.41, which might have raised some concerns about the company's ability to cover its short-term obligations at that point in time.
Overall, Xylem's cash ratio has fluctuated within a moderate range over the past two years, indicating that the company has managed its cash and cash equivalents relative to its current liabilities. Investors and stakeholders would typically prefer to see a stable or increasing trend in the cash ratio over time, as it reflects the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023