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Xylem Inc Financial Ratios

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Xylem Inc. Ratio Analysis
Reginald Palmer
Villanova University

HRD 8003
Richard Powel
June 19, 2016 Abstract
Xylem Inc. is leading provider of water technology, involved in treating, testing, transport, and working with public utilities, residential, commercial, industrial and agricultural partners. It was spun off from a company called ITT in 2011. By all appearances, the company seems to be performing well. This study takes a closer look at its financials to get a truer representation of the company’s performance, looking for trends to more objectively determine its outlook.

Xylem Inc Ratio Analysis

Outside of the US, Today, nearly 1 billion people in the developing world don’t have access clean drinking water and …show more content…

For the industrial sector, an average could not be found but it would be reasonable to assume that 50% financing of its assets is not outside the norm.
Xylem’s times interest earned ratio jumped from 3.73 in 2013 to 5.4 in 2014, and then flattened a bit for 2015 at 5.45. This positive trend would be an indication that Xylem is able meet its interest payment obligation, and this increases investor confidence in Xylem. The inputs for the fixed payment coverage ratio were not available but the 10K contained an aggregate ratio of earnings to fixed charges for review (Xylem Inc., 2015). In 2013 it was 4.7 and then increased to 6.4 in 2014, and remained flat for 2015 at 6.4. A good indication that Xylem is well positioned to meet its fixed-payment obligations. …show more content…

is a company well positioned in its industry. Its balance sheet and key ratios tell a positive story over the past three years. For a relatively young company, the business model not only appears sustainable, but through planned mergers and acquisitions, has an opportunity experience significant growth in both the short and long term. It has products lines, whose names go back 100 years, so it carries with it familiarity that lends itself to credibility, even though the company itself is in its infancy stage. With the water challenges faced by our planet, a company like Xylem that has strong revenue growth, balanced debt to equity, and profit margins that exceed the industry averages, looks like a solid investment going forward. Decker, Paterick. "XYL Inc Investor Day." September 24 2015. August 6, 2016.
Gitman, Lawrence, and Chad Zutter. Principles of Managerial Finance. Pearson, 2015.
---. Principles of Managerial Finance. Pearson, 2015.
---. Principles of Managerial Finance. Pearson, 2015.
---. Principles of Managerial Finance. Pearson, 2015.
---. Principles of Managerial Finance. Pearson, 2015.
Huebsch, Russell. "Does High or Low Inventory Turnover Ratio Depend on the Industry?" Houston Chronicle (2015): Small Business. June 12, 2016 .
Unknown with Xylem Corporation. Investors. 2016. Investor Relations. Xylem.Com. June 12, 2016 .
Unkown. Global Water Crisis: Water and Sanitation Facts. 2015. Crisis. Water.Org. June 12, 20016 .
---. Industrial Goods Sector. 2016.

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