Xylem Inc (XYL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 967,000 | 891,000 | 730,000 | 652,000 | 638,000 | 615,000 | 642,000 | 622,000 | 565,000 | 549,000 | 563,000 | 585,000 | 624,000 | 545,000 | 439,000 | 367,000 | 383,000 | 321,000 | 438,000 | 486,000 |
| Total assets | US$ in thousands | 16,493,000 | 16,046,000 | 15,924,000 | 16,112,000 | 15,905,000 | 16,097,000 | 7,940,000 | 7,952,000 | 8,106,000 | 8,189,000 | 8,219,000 | 8,276,000 | 8,151,000 | 8,785,000 | 8,545,000 | 8,750,000 | 8,448,000 | 8,444,000 | 7,591,000 | 7,710,000 |
| Operating ROA | 5.86% | 5.55% | 4.58% | 4.05% | 4.01% | 3.82% | 8.09% | 7.82% | 6.97% | 6.70% | 6.85% | 7.07% | 7.66% | 6.20% | 5.14% | 4.19% | 4.53% | 3.80% | 5.77% | 6.30% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $967,000K ÷ $16,493,000K
= 5.86%
Operating Return on Assets (Operating ROA) is a financial ratio that measures a company's ability to generate earnings from its operating activities relative to the total assets it has. In the case of Xylem Inc, the operating ROA has fluctuated over the observed periods. Here is a detailed analysis of the trend:
- Xylem's operating ROA started at 6.30% on December 31, 2019, showing a relatively stable performance in the beginning.
- The ratio slightly decreased to 5.77% on March 31, 2020, then further declined to 3.80% by June 30, 2020. This could indicate potential challenges in efficiently utilizing its assets to generate operating income.
- There was a partial recovery as the ratio improved to 4.53% on September 30, 2020, and further to 4.19% by the end of 2020. However, it remained below the initial levels.
- Xylem's operating ROA showed a more significant improvement in the following periods, reaching 7.07% on December 31, 2021, and peaking at 8.09% by March 31, 2023. This suggests enhanced operational efficiency and profitability during this time frame.
- However, the ratio experienced a decline in the subsequent periods, dropping to 3.82% on June 30, 2023, and recovering slightly to 5.86% by December 31, 2024. This fluctuation may indicate variability in the company's asset utilization and profitability.
Overall, Xylem Inc's operating return on assets has demonstrated volatility over the years, with periods of both improvement and decline. It is important for investors and stakeholders to closely monitor this metric to assess the company's operational performance and the effectiveness of asset management strategies.
Peer comparison
Dec 31, 2024