Zurn Elkay Water Solutions Corporation (ZWS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,318,000 | 882,400 | 816,300 | 537,700 | 1,745,700 |
| Inventory | US$ in thousands | 272,600 | 277,600 | 366,700 | 184,500 | 317,500 |
| Inventory turnover | 4.83 | 3.18 | 2.23 | 2.91 | 5.50 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,318,000K ÷ $272,600K
= 4.83
Based on the inventory turnover data provided for Zurn Elkay Water Solutions Corporation, we can observe fluctuations in the efficiency with which the company manages its inventory.
- As of March 31, 2020, the inventory turnover ratio was 5.50, indicating that the company had a high level of inventory turnover, suggesting that its inventory was moving quickly.
- However, by December 31, 2021, the inventory turnover ratio decreased to 2.91, reflecting a slowdown in the turnover of inventory, which may suggest potential issues with inventory management or sales.
- This trend continued to December 31, 2022, with a further decrease in the inventory turnover ratio to 2.23, signaling a longer time for the company to sell its inventory, potentially leading to higher holding costs or obsolete inventory concerns.
- By December 31, 2023, there was an improvement in the inventory turnover ratio to 3.18, indicating a slight recovery in inventory management efficiency.
- Finally, by December 31, 2024, the inventory turnover ratio increased significantly to 4.83, showing a strong improvement in inventory turnover efficiency, which may suggest better sales performance or more effective inventory control.
Overall, the fluctuation in Zurn Elkay Water Solutions Corporation's inventory turnover ratios over the years highlights the importance of closely monitoring inventory management practices to ensure optimal efficiency and profitability.
Peer comparison
Dec 31, 2024