Xylem Inc (XYL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,884,000 | 3,012,000 | 3,160,000 | 3,523,000 | 2,450,000 |
| Total current liabilities | US$ in thousands | 2,205,000 | 1,590,000 | 1,391,000 | 1,956,000 | 1,501,000 |
| Current ratio | 1.76 | 1.89 | 2.27 | 1.80 | 1.63 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,884,000K ÷ $2,205,000K
= 1.76
The current ratio of Xylem Inc has fluctuated over the past five years, ranging from a low of 1.63 in 2019 to a high of 2.27 in 2021. In 2023, the current ratio decreased to 1.76 from 1.89 in 2022.
A current ratio above 1 indicates that Xylem Inc has more current assets than current liabilities, suggesting a healthy liquidity position. A higher current ratio implies that the company has a larger buffer to cover its short-term obligations.
However, a declining trend in the current ratio over the years may indicate that Xylem Inc is becoming less liquid in the short term. It is essential for investors and analysts to monitor changes in the current ratio to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023