Xylem Inc (XYL)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,098,000 3,884,000 3,012,000 3,160,000 3,523,000
Total current liabilities US$ in thousands 2,336,000 2,205,000 1,590,000 1,391,000 1,956,000
Current ratio 1.75 1.76 1.89 2.27 1.80

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,098,000K ÷ $2,336,000K
= 1.75

The current ratio of Xylem Inc has displayed fluctuations over the past five years. As of December 31, 2020, the ratio stood at 1.80, indicating that the company had $1.80 in current assets for every $1 in current liabilities. This ratio improved to 2.27 by December 31, 2021, signaling a stronger liquidity position. However, there was a slight decline in the current ratio to 1.89 by December 31, 2022. Subsequently, by December 31, 2023, the current ratio decreased further to 1.76, and by the end of 2024, it stood at 1.75.

Overall, while the current ratio of Xylem Inc experienced some fluctuations, it generally remained above 1, indicating the company's ability to meet its short-term financial obligations. However, the downward trend in recent years suggests a potential need for closer monitoring of liquidity management to ensure continued financial stability.