Xylem Inc (XYL)
Return on equity (ROE)
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 609,000 | 492,000 | 352,000 | 372,000 | 355,000 | 319,000 | 421,000 | 422,000 | 427,000 | 462,000 | 385,000 | 303,000 | 254,000 | 224,000 | 252,000 | 360,000 | 401,000 | 508,000 | 573,000 | 549,000 |
| Total stockholders’ equity | US$ in thousands | 10,166,000 | 9,930,000 | 9,899,000 | 3,578,000 | 3,494,000 | 3,215,000 | 3,195,000 | 3,198,000 | 3,218,000 | 3,093,000 | 3,040,000 | 2,937,000 | 2,968,000 | 2,867,000 | 2,856,000 | 2,812,000 | 2,957,000 | 2,886,000 | 2,894,000 | 2,796,000 |
| ROE | 5.99% | 4.95% | 3.56% | 10.40% | 10.16% | 9.92% | 13.18% | 13.20% | 13.27% | 14.94% | 12.66% | 10.32% | 8.56% | 7.81% | 8.82% | 12.80% | 13.56% | 17.60% | 19.80% | 19.64% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $609,000K ÷ $10,166,000K
= 5.99%
The return on equity (ROE) of Xylem Inc has shown some fluctuations over the past eight quarters. In Q1 2022, the ROE was the highest at 13.20%, indicating that for every dollar of shareholders' equity, the company generated a profit of 13.20 cents. However, in the following quarters, the ROE fluctuated, with the lowest value recorded in Q3 2023 at 4.95% and the second lowest in Q2 2023 at 3.56%.
The recent ROE values in Q3 and Q2 2023 suggest that Xylem Inc's profitability in relation to its shareholders' equity has declined. This trend warrants further investigation into the company's operational efficiency, profitability, and asset management to identify potential factors influencing the diminishing ROE.
It is essential for investors and stakeholders to closely monitor Xylem Inc's ROE trends and compare them with industry benchmarks to assess the company's performance and financial health accurately. A declining ROE could signal underlying issues that may require strategic adjustments by the management to enhance profitability and maximize shareholder value.
Peer comparison
Dec 31, 2023