Xylem Inc (XYL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 980,000 | 912,000 | 759,000 | 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 |
| Long-term debt | US$ in thousands | 1,978,000 | 1,977,000 | 1,985,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 10,642,000 | 10,593,000 | 10,195,000 | 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 |
| Return on total capital | 7.77% | 7.26% | 6.23% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $980,000K ÷ ($1,978,000K + $10,642,000K)
= 7.77%
Xylem Inc's return on total capital has fluctuated over the reported periods. It stood at 9.67% as of December 31, 2019, and gradually decreased to 5.23% by June 30, 2020. However, there was a subsequent improvement, reaching 11.30% by September 30, 2021. The ratio then slightly decreased but remained relatively stable around the 10% mark until March 31, 2023.
There was a significant drop in return on total capital to 4.04% by June 30, 2023, indicating a potential decrease in the company's efficiency in generating returns relative to its total capital employed. The ratio showed a slight recovery to 6.23% by March 31, 2024, and further improved to 7.77% by December 31, 2024.
The fluctuation in return on total capital may suggest variations in Xylem Inc's operational performance and efficiency in utilizing total capital to generate profits over the reported periods. Further analysis would be needed to understand the factors driving these fluctuations and their implications for the company's financial health and future prospects.
Peer comparison
Dec 31, 2024