Xylem Inc (XYL)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 652,000 | 622,000 | 585,000 | 367,000 | 486,000 |
| Revenue | US$ in thousands | 7,364,000 | 5,522,000 | 5,195,000 | 4,876,000 | 5,249,000 |
| Operating profit margin | 8.85% | 11.26% | 11.26% | 7.53% | 9.26% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $652,000K ÷ $7,364,000K
= 8.85%
The operating profit margin of Xylem Inc has shown a fluctuating trend over the past five years. In 2019, the operating profit margin was the highest at 13.28%, indicating that the company was able to generate a higher proportion of operating profit relative to its revenue in that year.
Subsequently, there was a decline in the operating profit margin in 2020 to 10.25%, which suggests a decrease in efficiency or increased costs relative to revenue generation. However, the margin improved in 2021 to 11.40%, indicating that the company may have implemented strategies to enhance operational performance.
In 2022, the operating profit margin increased further to 11.79%, reflecting continued improvement in profitability. However, in the most recent year, 2023, the margin decreased to 9.89%, which could be a cause for concern as it signifies a lower level of profitability relative to revenue compared to the previous year.
Overall, Xylem Inc's operating profit margin has displayed some variability, and stakeholders may want to further examine the factors driving these fluctuations to assess the company's operational efficiency and profitability in more detail.
Peer comparison
Dec 31, 2023