Xylem Inc (XYL)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,009,000 652,000 622,000 585,000 367,000
Total assets US$ in thousands 16,493,000 16,112,000 7,952,000 8,276,000 8,750,000
Operating ROA 6.12% 4.05% 7.82% 7.07% 4.19%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,009,000K ÷ $16,493,000K
= 6.12%

Xylem Inc's operating return on assets (operating ROA) has shown fluctuations over the years based on the provided data. As of December 31, 2020, the operating ROA was at 4.19%, indicating that the company generated $0.0419 in operating income for every dollar of assets.

By the end of December 31, 2021, the operating ROA improved to 7.07%, showing a significant increase in efficiency in generating operating income from its assets. This upward trend continued into December 31, 2022, where the operating ROA further increased to 7.82%, suggesting continued enhanced asset utilization and profitability.

However, there was a slight decline in performance by December 31, 2023, as the operating ROA decreased to 4.05%. This could indicate potential challenges in operational efficiency or profitability during that period.

Fortunately, the company was able to partially recover by the end of December 31, 2024, with the operating ROA rising to 6.12%. Overall, Xylem Inc's operating ROA has shown variability over the years, highlighting the importance of monitoring and analyzing the company's ability to generate operating income relative to its assets.