Xylem Inc (XYL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.90% | 37.74% | 38.02% | 37.53% | 38.98% |
| Operating profit margin | 8.85% | 11.26% | 11.26% | 7.53% | 9.26% |
| Pretax margin | 8.62% | 7.97% | 9.84% | 5.84% | 7.93% |
| Net profit margin | 8.27% | 6.43% | 8.22% | 5.21% | 7.64% |
Xylem Inc's profitability ratios show a fluctuating trend over the past five years. The gross profit margin has been on a slight decline, from 38.98% in 2019 to 36.90% in 2023. This indicates that the company's cost of goods sold relative to its revenue has increased slightly.
The operating profit margin also shows a declining trend, from 13.28% in 2019 to 9.89% in 2023. This suggests that Xylem Inc's operating expenses as a percentage of revenue have been increasing, impacting its profitability.
The pretax margin has shown some variability, with a peak of 9.84% in 2021 and a low of 5.84% in 2020. This ratio measures the company's ability to generate profits before accounting for taxes.
Regarding the net profit margin, there has been some inconsistency in performance, ranging from 5.21% in 2020 to 8.27% in 2023. This ratio reflects the company's overall profit after accounting for all expenses.
In summary, Xylem Inc's profitability ratios indicate some challenges in maintaining consistent profitability over the past five years. It may be essential for the company to focus on managing its costs more effectively and improving operational efficiency to enhance its overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.05% | 7.82% | 7.07% | 4.19% | 6.30% |
| Return on assets (ROA) | 3.78% | 4.46% | 5.16% | 2.90% | 5.20% |
| Return on total capital | 5.50% | 9.12% | 10.37% | 6.64% | 9.67% |
| Return on equity (ROE) | 5.99% | 10.16% | 13.27% | 8.56% | 13.56% |
Xylem Inc's profitability ratios have fluctuated over the years, indicating varying levels of efficiency in utilizing its assets and generating returns for its investors.
- Operating return on assets (Operating ROA) has shown a decreasing trend from 2019 to 2023, implying that Xylem's ability to generate operating income from its assets has declined over this period. This could be a cause for concern as it indicates a potential inefficiency in the company's operations.
- Return on assets (ROA) also exhibits a mixed performance, with a significant decrease in 2020 followed by a slight recovery in the subsequent years. This ratio provides an overall measure of profitability relative to the total assets employed by the company, and Xylem's ability to generate profits from its assets has been inconsistent.
- Return on total capital indicates the overall return generated on all capital invested in the company, including both debt and equity. The ratio demonstrates a decline from 2019 to 2023, suggesting a decrease in the overall profitability relative to the total capital employed by Xylem.
- Return on equity (ROE), which measures the return generated for the shareholders, has also shown a fluctuating trend over the years. There was a notable drop in 2020 followed by a gradual improvement in the subsequent years. This indicates that Xylem has been able to generate varying levels of returns for its equity investors.
Overall, Xylem's profitability ratios reflect a mixed performance, with fluctuations observed in key metrics such as ROA, Operating ROA, Return on total capital, and ROE. This suggests that the company's ability to generate profits and returns for its stakeholders has been inconsistent and warrants further analysis to identify the underlying reasons for these trends.