Xylem Inc (XYL)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 890,000 609,000 355,000 427,000 254,000
Total assets US$ in thousands 16,493,000 16,112,000 7,952,000 8,276,000 8,750,000
ROA 5.40% 3.78% 4.46% 5.16% 2.90%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $890,000K ÷ $16,493,000K
= 5.40%

The return on assets (ROA) of Xylem Inc has shown fluctuations over the past five years. In December 31, 2020, the ROA was 2.90%, indicating that the company generated 2.90 cents of profit for every dollar of assets it had. This figure increased to 5.16% by December 31, 2021, illustrating a significant improvement in the company's efficiency in generating profits from its assets.

However, by December 31, 2022, the ROA decreased to 4.46%, suggesting a slight decline in the company's ability to generate profits relative to its assets. In December 31, 2023, the ROA further dropped to 3.78%, signaling a continued decrease in the company's profitability compared to its asset base.

Nonetheless, by December 31, 2024, Xylem Inc managed to improve its ROA to 5.40%, surpassing the previous year's performance. This indicates that the company was able to enhance its efficiency in utilizing its assets to generate profits.

Overall, Xylem Inc's ROA performance has shown variability over the years, with fluctuations reflecting changes in the company's ability to generate profits relative to its asset base. It is essential for stakeholders to monitor these trends to assess the company's operational efficiency and financial performance.