Xylem Inc (XYL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 609,000 | 355,000 | 427,000 | 254,000 | 401,000 |
| Total assets | US$ in thousands | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 | 7,710,000 |
| ROA | 3.78% | 4.46% | 5.16% | 2.90% | 5.20% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $609,000K ÷ $16,112,000K
= 3.78%
Xylem Inc's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA stands at 3.78%, representing a decrease from the previous year's figure of 4.46%. This downward trend follows a similar pattern seen in 2020 when the ROA dropped to 2.90% from 5.16% in 2021. However, it is worth noting that the ROA in 2023 is still higher than 2020's level.
Compared to the peak performance observed in 2019, when the ROA was at 5.20%, Xylem Inc's profitability as measured by ROA has declined in recent years. This indicates that the company may be facing challenges in generating profits relative to its total assets.
Overall, Xylem Inc's ROA trend suggests that the company's efficiency in utilizing its assets to generate earnings has been somewhat inconsistent. Further analysis of the underlying factors driving these changes in ROA may be necessary to understand the company's financial performance more comprehensively.
Peer comparison
Dec 31, 2023