Xylem Inc (XYL)
Debt-to-equity 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-equity ratio | 0.19 | 0.22 | 0.54 | 0.76 | 0.84 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,978,000K ÷ $10,642,000K
= 0.19
The debt-to-equity ratio of Xylem Inc has shown a decreasing trend from 0.84 in December 31, 2020, to 0.19 in December 31, 2024. This indicates that the company has been gradually reducing its reliance on debt financing in relation to equity over the years. A decreasing debt-to-equity ratio generally suggests improved financial health and lower financial risk for the company. Xylem Inc's declining debt-to-equity ratio may signify effective management of its capital structure and potentially improved investor confidence due to lower debt levels. Overall, the trend in the debt-to-equity ratio reflects a positive financial trajectory for Xylem Inc.
Peer comparison
Dec 31, 2024