Xylem Inc (XYL)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,978,000 | 2,268,000 | 1,880,000 | 2,440,000 | 2,484,000 |
| Total stockholders’ equity | US$ in thousands | 10,642,000 | 10,166,000 | 3,494,000 | 3,218,000 | 2,968,000 |
| Debt-to-capital ratio | 0.16 | 0.18 | 0.35 | 0.43 | 0.46 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,978,000K ÷ ($1,978,000K + $10,642,000K)
= 0.16
The debt-to-capital ratio of Xylem Inc has demonstrated a downward trend over the past five years, decreasing from 0.46 as of December 31, 2020, to 0.16 as of December 31, 2024. This indicates that the company has been effectively managing its capital structure by reducing its reliance on debt financing in relation to its total capital. A decreasing debt-to-capital ratio suggests that Xylem Inc may be improving its financial stability and reducing its financial risk exposure. This trend may be appealing to investors and creditors as it reflects a healthier balance between debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2024