Xylem Inc (XYL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 684,000 | 490,000 | 587,000 | 362,000 | 483,000 |
| Long-term debt | US$ in thousands | 2,268,000 | 1,880,000 | 2,440,000 | 2,484,000 | 2,040,000 |
| Total stockholders’ equity | US$ in thousands | 10,166,000 | 3,494,000 | 3,218,000 | 2,968,000 | 2,957,000 |
| Return on total capital | 5.50% | 9.12% | 10.37% | 6.64% | 9.67% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $684,000K ÷ ($2,268,000K + $10,166,000K)
= 5.50%
The return on total capital of Xylem Inc has shown some fluctuations over the past five years. In 2023, the return on total capital decreased to 5.85%, a significant drop from the previous year's level of 12.11%. This decrease could indicate a decline in the company's profitability and efficiency in generating returns from its total invested capital.
Comparing the data over the five-year period, we can observe that the return on total capital was highest in 2019 at 13.28%, followed by a dip in 2020 to 8.26%. The return then increased in 2021 to 10.46% before dropping again in the most recent year, 2023.
Overall, the trend in Xylem Inc's return on total capital suggests some variability in the company's ability to generate returns relative to its total capital base over the years. Further analysis and examination of the company's financial performance and operational efficiency may be warranted to understand the factors driving these fluctuations in returns.
Peer comparison
Dec 31, 2023