Xylem Inc (XYL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,166,000 | 3,494,000 | 3,218,000 | 2,968,000 | 2,957,000 |
| ROE | 5.99% | 10.16% | 13.27% | 8.56% | 13.56% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $609,000K ÷ $10,166,000K
= 5.99%
Xylem Inc's return on equity (ROE) has shown a decreasing trend over the 5-year period from 2019 to 2023. The ROE decreased from 13.56% in 2019 to 5.99% in 2023. This indicates that the company's ability to generate profit from its shareholders' equity has declined over the years. The fluctuations in ROE could be attributed to changes in the company's financial performance, use of leverage, or efficiency in utilizing equity to generate profits. Investors and stakeholders may want to further investigate the factors contributing to the decrease in ROE to assess Xylem Inc's overall financial health and performance.
Peer comparison
Dec 31, 2023