Xylem Inc (XYL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 684,000 | 662,000 | 492,000 | 514,000 | 490,000 | 427,000 | 552,000 | 563,000 | 587,000 | 627,000 | 545,000 | 439,000 | 362,000 | 376,000 | 308,000 | 429,000 | 483,000 | 488,000 | 666,000 | 663,000 |
| Long-term debt | US$ in thousands | 2,268,000 | 2,253,000 | 2,267,000 | 1,881,000 | 1,880,000 | 1,880,000 | 1,879,000 | 1,878,000 | 2,440,000 | 2,455,000 | 2,466,000 | 2,460,000 | 2,484,000 | 3,053,000 | 3,031,000 | 2,031,000 | 2,040,000 | 2,030,000 | 2,051,000 | 2,044,000 |
| 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 |
| Return on total capital | 5.50% | 5.43% | 4.04% | 9.42% | 9.12% | 8.38% | 10.88% | 11.09% | 10.37% | 11.30% | 9.90% | 8.13% | 6.64% | 6.35% | 5.23% | 8.86% | 9.67% | 9.93% | 13.47% | 13.70% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $684,000K ÷ ($2,268,000K + $10,166,000K)
= 5.50%
The return on total capital for Xylem Inc has shown a moderate fluctuation over the past eight quarters. In the most recent quarter, Q4 2023, the return on total capital was recorded at 5.85%, slightly higher than the previous quarter's figure of 5.75%. However, this current ratio is notably lower compared to the impressive performance in Q1 2023 and Q4 2022, where the return on total capital stood at 12.44% and 12.11% respectively.
Overall, the return on total capital for Xylem Inc has ranged between 5.42% and 12.44% over the analyzed period. The company's ability to generate returns from both debt and equity capital should be closely monitored to ensure sustained financial performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2023