Zurn Elkay Water Solutions Corporation (ZWS)

Days of inventory on hand (DOH)

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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Inventory turnover 4.74 4.74 4.64 4.80 4.70 4.54 3.75 3.20 2.46 4.21 5.62 8.19 4.66 4.76 3.60 3.43 3.53 4.02 3.68 3.73
DOH days 76.95 77.00 78.69 76.07 77.69 80.36 97.45 113.92 148.13 86.63 65.00 44.56 78.28 76.68 101.39 106.32 103.35 90.76 99.26 97.94

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.74
= 76.95

The days of inventory on hand (DOH) for Zurn Elkay Water Solutions Corporation have shown some fluctuations over the years. Beginning in September 2019 at 97.94 days, the DOH increased to 106.32 days by September 2020, indicating that the company was holding inventory for a longer period. Subsequently, there was a decrease in DOH to 44.56 days by December 2021, possibly due to improved inventory management or increased sales.

However, the DOH increased significantly to 148.13 days by September 2022, suggesting potential issues with inventory control or a slowdown in sales. This high DOH may be a cause for concern as holding excessive inventory for a prolonged period can tie up working capital and lead to storage costs.

The company managed to bring down the DOH to 76.07 days by December 2023, indicating efforts to streamline inventory management. From December 2023 to December 2024, the DOH remained relatively stable between 76.07 days and 76.95 days.

In conclusion, while Zurn Elkay Water Solutions Corporation has shown fluctuations in its DOH, the trend seems to be towards more efficient inventory management in recent periods after experiencing some peaks and valleys in inventory holding periods. It will be crucial for the company to continue monitoring and optimizing its inventory levels to ensure optimal use of resources and improve its overall financial performance.