Xylem Inc (XYL)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 10,642,000 10,166,000 3,494,000 3,218,000 2,968,000
ROE 8.36% 5.99% 10.16% 13.27% 8.56%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $890,000K ÷ $10,642,000K
= 8.36%

Xylem Inc's Return on Equity (ROE) has shown fluctuations over the past five years. In December 2020, the ROE was 8.56%, indicating that for every dollar of shareholder equity, the company generated a return of 8.56%. This ratio improved to 13.27% by December 2021, reflecting better profitability and efficiency in utilizing shareholder's equity.

However, by December 2022, the ROE decreased to 10.16%, indicating a slight decline in the company's ability to generate profits from shareholder equity. The trend continued in December 2023, with a further decline in ROE to 5.99%, suggesting potential challenges in profitability or efficiency during that period.

By December 2024, the ROE had slightly improved to 8.36%, but it remained below the levels observed in 2021 and 2022. Overall, Xylem Inc's ROE performance has demonstrated variability, with periods of improvement and decline. Further analysis of the company's financial and operational strategies may be necessary to understand the factors influencing these fluctuations in ROE.