Xylem Inc (XYL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.18 | 0.35 | 0.43 | 0.46 | 0.41 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,268,000K ÷ ($2,268,000K + $10,166,000K)
= 0.18
The debt-to-capital ratio of Xylem Inc has shown a consistent downward trend over the past five years, indicating a decreasing reliance on debt to finance its operations and investment activities. The ratio decreased from 0.44 in 2019 to 0.18 in 2023, suggesting a more conservative capital structure and improved financial leverage. This may reflect successful debt management strategies, such as debt repayment or increased equity financing, which have strengthened the company's financial position. A lower debt-to-capital ratio generally implies lower financial risk and greater financial stability for the company. Overall, the decreasing trend in Xylem Inc's debt-to-capital ratio is a positive sign of prudent financial management and sustainable growth.
Peer comparison
Dec 31, 2023