Zurn Elkay Water Solutions Corporation (ZWS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 882,400 | 816,300 | 537,700 | 1,745,700 | 1,266,100 |
| Inventory | US$ in thousands | 277,600 | 366,700 | 184,500 | 317,500 | 316,500 |
| Inventory turnover | 3.18 | 2.23 | 2.91 | 5.50 | 4.00 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $882,400K ÷ $277,600K
= 3.18
The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period.
Zurn Elkay Water Solutions Corporation's inventory turnover has varied over the past five years:
1. In 2023, the inventory turnover ratio was 3.18, indicating that the company sold and replaced its inventory approximately 3.18 times during the year. This suggests an improvement in inventory management efficiency compared to the previous years.
2. In 2022, the inventory turnover ratio was 2.23, signifying a lower turnover compared to 2023. This could indicate either slow sales or inefficient inventory management during that period.
3. In 2021, the inventory turnover ratio improved to 2.91 from the previous year, showing that the company was selling its inventory more frequently compared to 2022.
4. In 2020, the inventory turnover ratio spiked to 5.50, indicating a significant improvement in inventory turnover efficiency. This could be due to factors such as increased sales or more effective inventory management practices.
5. In 2019, the inventory turnover ratio was 4.00, which was lower than 2020 but still higher than the subsequent years, indicating consistent efficiency in managing inventory during that period.
Overall, Zurn Elkay Water Solutions Corporation's inventory turnover has shown fluctuations over the past five years. A higher inventory turnover ratio generally suggests better inventory management and sales efficiency, while a lower ratio may signal issues such as overstocking or slow sales.
Peer comparison
Dec 31, 2023