Xylem Inc (XYL)
Quick 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 | 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 | — | — | — |
| Receivables | US$ in thousands | 1,617,000 | 1,653,000 | 1,659,000 | 1,123,000 | 1,096,000 | 1,018,000 | 1,024,000 | 1,011,000 | 953,000 | 973,000 | 975,000 | 952,000 | 923,000 | 968,000 | 956,000 | 975,000 | 1,036,000 | 1,078,000 | 1,096,000 | 1,020,000 |
| 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 |
| Quick ratio | 1.20 | 1.11 | 1.04 | 1.31 | 1.28 | 1.14 | 1.10 | 1.11 | 1.65 | 1.70 | 1.44 | 1.43 | 1.43 | 2.01 | 1.84 | 1.08 | 1.17 | 1.05 | 0.96 | 0.90 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,019,000K
+ $—K
+ $1,617,000K)
÷ $2,205,000K
= 1.20
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher typically indicates that a company has an acceptable level of liquidity.
Analyzing the trend of Xylem Inc's quick ratio over the past eight quarters reveals fluctuations but generally indicates good liquidity management. In Q4 2023, the quick ratio stood at 1.30, showing an improvement compared to the previous quarter's 1.21.
Looking further back, the quick ratio ranged from 1.14 to 1.44 over the past year. Despite some variability, the quick ratio consistently remained above 1, suggesting that Xylem Inc has been able to cover its current liabilities with its quick assets in the short term.
Overall, the trend in Xylem Inc's quick ratio demonstrates a satisfactory liquidity position, with the company maintaining a level of quick assets sufficient to meet its short-term obligations. However, monitoring fluctuations in the quick ratio over time can provide insights into the company's evolving liquidity management strategies.
Peer comparison
Dec 31, 2023