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Xylem (XYL) Gross Margin % : 37.76% (As of Jun. 2024)


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What is Xylem Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Xylem's Gross Profit for the three months ended in Jun. 2024 was $819 Mil. Xylem's Revenue for the three months ended in Jun. 2024 was $2,169 Mil. Therefore, Xylem's Gross Margin % for the quarter that ended in Jun. 2024 was 37.76%.


The historical rank and industry rank for Xylem's Gross Margin % or its related term are showing as below:

XYL' s Gross Margin % Range Over the Past 10 Years
Min: 36.82   Med: 38.54   Max: 39.24
Current: 36.82


During the past 13 years, the highest Gross Margin % of Xylem was 39.24%. The lowest was 36.82%. And the median was 38.54%.

XYL's Gross Margin % is ranked better than
75.12% of 2938 companies
in the Industrial Products industry
Industry Median: 26.74 vs XYL: 36.82

Xylem had a gross margin of 37.76% for the quarter that ended in Jun. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Xylem was -1.00% per year.


Xylem Gross Margin % Historical Data

The historical data trend for Xylem's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Xylem Gross Margin % Chart

Xylem Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.98 37.53 38.02 37.74 36.90

Xylem Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.80 36.80 35.69 36.99 37.76

Competitive Comparison of Xylem's Gross Margin %

For the Specialty Industrial Machinery subindustry, Xylem's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Xylem's Gross Margin % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Xylem's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Xylem's Gross Margin % falls into.



Xylem Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Xylem's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2717 / 7364
=(Revenue - Cost of Goods Sold) / Revenue
=(7364 - 4647) / 7364
=36.90 %

Xylem's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=819 / 2169
=(Revenue - Cost of Goods Sold) / Revenue
=(2169 - 1350) / 2169
=37.76 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Xylem  (NYSE:XYL) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Xylem had a gross margin of 37.76% for the quarter that ended in Jun. 2024 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Xylem Gross Margin % Related Terms

Thank you for viewing the detailed overview of Xylem's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Xylem Business Description

Address
300 Water Street SE, Washington, DC, USA, 20003
Xylem is a global leader in water technology and offers a wide range of solutions, including the transport, treatment, testing, and efficient use of water for customers in the utility, industrial, commercial, and residential sectors. Xylem was spun off from ITT in 2011. Based in Rye Brook, New York, Xylem has a presence in over 150 countries and employs 16,200. The company generated $7.4 billion in revenue in 2023.
Executives
Victoria D Harker director 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Geri-michelle Mcshane officer: Chief Accounting Officer C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Rodney Aulick officer: SVP & President, IS&S EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Franz Cerwinka officer: SVP and President, Emerging Ma XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Jeanne Beliveau-dunn director C/O XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Claudia S Toussaint officer: SVP, GC & Corporate Secretary 5454 W 110TH STREET, OVERLAND PARK KS 66211
William K Grogan officer: SVP & Chief Financial Officer 3100 SANDERS ROAD, SUITE 301, NORTHBROOK IL 60062
Patrick Decker director, officer: President & CEO 9 ROSZEL ROAD, PRINCETON NJ 08540
Lisa Glatch director EVOQUA WATER TECHNOLOGIES CORP., 210 SIXTH AVENUE, PITTSBURGH PA 15222
Lynn C Swann director C/O AMERICAN HOMES 4 RENT, 23975 PARK SORRENTO, SUITE 300, CALABASAS CA 91302
Earl Ray Ellis director ONE LIBERTY PLAZA, 7TH FLOOR, NEW YORK NY 10006
Hayati Yarkadas officer: Senior Vice President C/O TRINSEO S.A., 1000 CHESTERBROOK BOULEVARD, SUITE 300, BERWYN PA 19312
Michael J. Mcgann officer: Senior Vice President 301 WATER STREET, SUITE 200, WASHINGTON DC 20003
Matthew Francis Pine officer: Senior Vice President XYLEM INC., 1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Sabol Colin R officer: SVP & Chief Strategy Officer 9921 MONTIANO DRIVE, NAPLES FL 34113