Xylem Inc (XYL)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 3,212,000 2,717,000 2,084,000 1,975,000 1,830,000
Revenue US$ in thousands 8,562,000 7,364,000 5,522,000 5,195,000 4,876,000
Gross profit margin 37.51% 36.90% 37.74% 38.02% 37.53%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,212,000K ÷ $8,562,000K
= 37.51%

To analyze Xylem Inc's gross profit margin over the period from December 31, 2020, to December 31, 2024:

1. The gross profit margin increased from 37.53% in 2020 to 38.02% in 2021, indicating an improvement in the company's ability to generate profit from its sales after accounting for the cost of goods sold.

2. In 2022, the gross profit margin slightly decreased to 37.74%, still relatively high compared to the initial value in 2020, reflecting the company's efficiency in managing its production costs.

3. However, there was a more significant decline in the gross profit margin in 2023, dropping to 36.90%. This reduction may suggest increased costs or pricing pressures impacting the company's profitability.

4. The gross profit margin recovered in 2024, reaching 37.51%, indicating a potential improvement in the company's cost structure or pricing strategies compared to the previous year.

Overall, Xylem Inc's gross profit margin demonstrated fluctuations over the period, with a general trend of maintaining levels above the initial value in 2020, signaling the company's ability to effectively manage its costs and maintain profitability in a competitive market environment.