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Xylem (XYL) Interest Coverage : 25.09 (As of Jun. 2024)


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What is Xylem Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Xylem's Operating Income for the three months ended in Jun. 2024 was $276 Mil. Xylem's Interest Expense for the three months ended in Jun. 2024 was $-11 Mil. Xylem's interest coverage for the quarter that ended in Jun. 2024 was 25.09. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Xylem's Interest Coverage or its related term are showing as below:

XYL' s Interest Coverage Range Over the Past 10 Years
Min: 6.26   Med: 8.26   Max: 17.68
Current: 17.68


XYL's Interest Coverage is ranked better than
54.53% of 2274 companies
in the Industrial Products industry
Industry Median: 13.985 vs XYL: 17.68

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Xylem Interest Coverage Historical Data

The historical data trend for Xylem's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Xylem Interest Coverage Chart

Xylem Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.40 6.49 7.79 10.22 14.86

Xylem Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage 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 12.25 15.14 16.43 15.64 25.09

Competitive Comparison of Xylem's Interest Coverage

For the Specialty Industrial Machinery subindustry, Xylem's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Xylem's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Xylem's Interest Coverage falls into.



Xylem Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, Xylem's Interest Expense was $-49 Mil. Its Operating Income was $728 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,268 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*728/-49
=14.86

Xylem's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Xylem's Interest Expense was $-11 Mil. Its Operating Income was $276 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,981 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*276/-11
=25.09

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Xylem  (NYSE:XYL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Xylem Interest Coverage Related Terms

Thank you for viewing the detailed overview of Xylem's Interest Coverage 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