Xylem Inc (XYL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 | 7,710,000 |
| Operating ROA | 4.05% | 7.82% | 7.07% | 4.19% | 6.30% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $652,000K ÷ $16,112,000K
= 4.05%
Xylem Inc's operating return on assets (ROA) has shown some variability over the past five years. The operating ROA for Xylem Inc decreased from 9.04% in 2019 to 4.52% in 2023. This suggests a decline in the company's operational efficiency in generating profits from its assets.
Although the operating ROA was at a relatively high level in 2019, it has been trending downward since then. The decrease in 2020 followed by a slight increase in 2021 and a further decrease in 2023 indicates fluctuations in the company's ability to generate operating income relative to its total assets.
It is important for Xylem Inc to closely monitor its operating ROA as it is a key indicator of its operational efficiency and profitability. The company may need to implement strategies to improve its operational performance and maximize returns from its assets in order to drive sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023