Xylem Inc (XYL)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Debt-to-assets ratio 0.12 0.12 0.12 0.14 0.14 0.14 0.24 0.24 0.23 0.23 0.23 0.29 0.30 0.28 0.29 0.28 0.36 0.36 0.27 0.26
Debt-to-capital ratio 0.16 0.16 0.16 0.18 0.18 0.19 0.34 0.35 0.37 0.37 0.37 0.43 0.44 0.45 0.46 0.46 0.52 0.51 0.42 0.41
Debt-to-equity ratio 0.19 0.19 0.19 0.22 0.23 0.23 0.53 0.54 0.58 0.59 0.59 0.76 0.79 0.81 0.84 0.84 1.06 1.06 0.72 0.69
Financial leverage ratio 1.55 1.51 1.56 1.58 1.60 1.63 2.22 2.28 2.52 2.56 2.57 2.57 2.64 2.89 2.91 2.95 2.95 2.96 2.70 2.61

The solvency ratios of Xylem Inc indicate the company's ability to meet its financial obligations and manage its debt levels.

1. Debt-to-assets ratio: This ratio has shown a decreasing trend from 0.26 at the end of 2019 to 0.12 by the end of 2024. A lower debt-to-assets ratio suggests that the company has a lower level of debt relative to its assets, which can indicate a stronger financial position.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has decreased steadily from 0.41 in December 2019 to 0.16 by December 2024. This indicates that the company is relying less on debt to finance its operations and investments.

3. Debt-to-equity ratio: The debt-to-equity ratio has followed a decreasing trend as well, declining from 0.69 in December 2019 to 0.19 by December 2024. A lower debt-to-equity ratio signifies lower financial risk and indicates that shareholders have a larger stake in the company's assets compared to creditors.

4. Financial leverage ratio: The financial leverage ratio also shows a decreasing pattern, dropping from 2.61 in December 2019 to 1.55 by the end of 2024. This decrease implies that the company is becoming less reliant on debt financing, which can reduce the financial risk and improve overall solvency.

Overall, the decreasing trends in these solvency ratios suggest that Xylem Inc has been effectively managing its debt levels, reducing financial risk, and enhancing its solvency position over the analyzed period.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Interest coverage 20.85 17.54 14.06 13.96 13.79 10.70 11.17 9.80 8.54 9.36 8.28 7.72 7.46 6.41 5.35 4.70 5.30 4.74 6.60 7.21

The interest coverage ratio of Xylem Inc has shown a fluctuating trend over the periods provided. The ratio was 7.21 as of December 31, 2019, indicating that the company earned 7.21 times the interest expenses. It decreased to 4.74 by June 30, 2020, suggesting a decrease in the company's ability to cover its interest obligations from operating profits.

However, the interest coverage improved thereafter, reaching 13.96 as of December 31, 2023, and further increased to 20.85 by December 31, 2024. This significant improvement indicates a stronger ability to meet interest payments through operational earnings.

Overall, the increasing trend in the interest coverage ratio signifies a positive sign of financial health and stability for Xylem Inc. The company has been able to generate more than enough operating income to cover its interest expenses in recent periods, indicating a reduced risk of default on its debt obligations.