Xylem Inc (XYL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,112,000 | 7,952,000 | 8,276,000 | 8,750,000 | 7,710,000 |
| Total stockholders’ equity | US$ in thousands | 10,166,000 | 3,494,000 | 3,218,000 | 2,968,000 | 2,957,000 |
| Financial leverage ratio | 1.58 | 2.28 | 2.57 | 2.95 | 2.61 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,112,000K ÷ $10,166,000K
= 1.58
The financial leverage ratio of Xylem Inc has displayed a declining trend over the years, decreasing from 2.95 in 2020 to 1.58 in 2023. A lower financial leverage ratio indicates that the company is relying less on debt to finance its operations and growth. This reduction in financial leverage could imply that Xylem Inc has been strategically managing its debt levels and focusing on improving its financial stability. It may also suggest that the company has been able to generate sufficient internal funds to support its operations and expansion, thereby reducing the need for external debt. Overall, the declining trend in the financial leverage ratio of Xylem Inc indicates a strengthening financial position and decreased risk associated with debt levels.
Peer comparison
Dec 31, 2023