Zurn Elkay Water Solutions Corporation (ZWS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,565,100 | 1,530,500 | 1,281,800 | 910,900 | 2,068,300 |
| Property, plant and equipment | US$ in thousands | 145,000 | 159,500 | 183,000 | 64,400 | 378,800 |
| Fixed asset turnover | 10.79 | 9.60 | 7.00 | 14.14 | 5.46 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,565,100K ÷ $145,000K
= 10.79
Fixed asset turnover is a key financial ratio that measures how effectively a company is generating revenue from its investment in fixed assets. For Zurn Elkay Water Solutions Corporation, the trend in fixed asset turnover over the past few years shows fluctuations, indicating changes in the efficiency of utilizing its fixed assets.
As of March 31, 2020, the fixed asset turnover ratio was 5.46, indicating that the company generated $5.46 in sales revenue for every $1 invested in fixed assets. This suggests a moderate efficiency in utilizing fixed assets to generate revenue.
By December 31, 2021, the fixed asset turnover ratio increased significantly to 14.14, signaling a substantial improvement in efficiency in generating sales from fixed assets. This spike could be attributed to better asset utilization or an increase in sales with a minimal investment in fixed assets.
However, the ratio dropped to 7.00 by the end of 2022, indicating a decline in efficiency compared to the previous year. This could be due to issues such as underutilization of assets, overinvestment in fixed assets, or a decrease in sales relative to asset value.
In the following years, the fixed asset turnover ratio improved again, reaching 9.60 by the end of 2023 and 10.79 by the end of 2024. These improvements suggest that the company managed to enhance its efficiency in utilizing fixed assets to generate sales revenue during these periods.
Overall, while there have been fluctuations in Zurn Elkay Water Solutions Corporation's fixed asset turnover ratio over the years, the general trend shows a mixed performance in efficiently generating revenue from its investment in fixed assets. Monitoring this ratio going forward will be crucial to assess the company's ability to maximize the returns from its fixed asset base.
Peer comparison
Dec 31, 2024