Xylem Inc (XYL)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 1,121,000 1,019,000 944,000 1,349,000 1,875,000
Short-term investments US$ in thousands — — — — —
Receivables US$ in thousands 1,668,000 1,617,000 1,096,000 953,000 923,000
Total current liabilities US$ in thousands 2,336,000 2,205,000 1,590,000 1,391,000 1,956,000
Quick ratio 1.19 1.20 1.28 1.65 1.43

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,121,000K + $—K + $1,668,000K) ÷ $2,336,000K
= 1.19

The quick ratio of Xylem Inc has shown variations over the past five years. In December 2020, the quick ratio was 1.43, indicating that the company had $1.43 in liquid assets available to cover each dollar of current liabilities. This ratio improved to 1.65 by December 2021, suggesting an increase in the company's ability to meet its short-term obligations with quick assets.

However, in the following years, there was a slight decline in the quick ratio. By December 2022, the quick ratio decreased to 1.28, and further dropped to 1.20 by December 2023, indicating a potentially tighter liquidity position. Despite this decline, the quick ratio remained above 1, which generally signifies that Xylem Inc still had an adequate level of liquid assets to cover its current liabilities.

By the end of December 2024, the quick ratio further decreased to 1.19, continuing the trend of decreasing liquidity over the years. It would be essential for Xylem Inc to closely monitor its liquidity position and take necessary steps to ensure it maintains a healthy balance between its quick assets and current liabilities in the future.