Xylem Inc (XYL)
Debt-to-equity 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-equity ratio | 0.22 | 0.54 | 0.76 | 0.84 | 0.69 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,268,000K ÷ $10,166,000K
= 0.22
The debt-to-equity ratio of Xylem Inc has demonstrated a decreasing trend over the past five years, indicating an improvement in the company's financial leverage position. In 2023, the ratio stands at 0.22, significantly lower than the ratios of 0.54 in 2022, 0.76 in 2021, 1.04 in 2020, and 0.78 in 2019. This suggests that Xylem Inc has been reducing its reliance on debt financing relative to equity financing, which can be viewed as a positive development for the company's overall financial health and stability. The current low debt-to-equity ratio indicates a stronger equity base compared to its debt obligations, potentially providing Xylem Inc with more financial flexibility and resilience in managing its obligations and pursuing growth opportunities.
Peer comparison
Dec 31, 2023