Zurn Elkay Water Solutions Corporation (ZWS)
Inventory turnover
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,320,700 | 1,329,300 | 1,331,900 | 1,335,700 | 1,425,300 | 1,307,600 | 1,174,900 | 986,100 | 1,025,500 | 1,259,500 | 1,511,300 | 1,801,800 | 1,717,900 | 1,254,200 | 1,221,100 | 1,231,900 | 1,276,800 | 1,284,500 | 1,284,200 | 1,294,500 |
| Inventory | US$ in thousands | 278,600 | 286,600 | 277,600 | 284,300 | 313,800 | 349,100 | 366,700 | 400,200 | 243,400 | 224,300 | 184,500 | 386,400 | 360,900 | 348,400 | 355,700 | 348,800 | 317,500 | 349,300 | 344,600 | 351,300 |
| Inventory turnover | 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 | 3.68 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,320,700K ÷ $278,600K
= 4.74
The inventory turnover ratio of Zurn Elkay Water Solutions Corporation has fluctuated over the past few quarters, ranging from a low of 2.46 to a high of 8.19. The ratio indicates the number of times a company sells and replaces its inventory within a specific period.
A higher inventory turnover generally implies efficient inventory management, as the company is able to sell its products quickly and restock efficiently. On the other hand, a lower turnover may suggest that the company is holding onto excess inventory or facing challenges in selling its products.
In the most recent quarter, the inventory turnover ratio was 4.74, which indicates that Zurn Elkay Water Solutions Corporation sold and replaced its inventory approximately 4.74 times during the period. Comparing this to previous quarters, we see some variability, with some quarters showing higher turnovers (e.g., 8.19) and others showing lower turnovers (e.g., 2.46).
It is important for the company to closely monitor its inventory turnover ratio and strive to maintain an optimal balance to ensure efficient operations. If the turnover is consistently low, it may tie up capital in excess inventory, impacting liquidity and profitability. Conversely, a very high turnover could suggest stockouts or lost sales.
Peer comparison
Sep 30, 2024
Sep 30, 2024