Zurn Elkay Water Solutions Corporation (ZWS)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,293,100 | 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 |
| Inventory | US$ in thousands | 272,600 | 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 |
| 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,293,100K ÷ $272,600K
= 4.74
The inventory turnover of Zurn Elkay Water Solutions Corporation has fluctuated over the past few years. In December 2021, the inventory turnover surged to 8.19, indicating that the company sold and replaced its inventory more than 8 times during that period. This could suggest efficient management of inventory levels and a quick turnover of goods.
However, the inventory turnover decreased in the following quarters, settling at around 4 to 5 times per year from 2023 onwards. Although this is still at a relatively healthy level, the downward trend may be a cause for concern as it indicates a slower rate of inventory turnover. A lower inventory turnover can tie up capital in excess inventory and potentially lead to obsolescence or increased storage costs.
The recent decrease in inventory turnover to 4.74 as of December 2024 suggests that Zurn Elkay Water Solutions Corporation may need to evaluate its inventory management practices to optimize working capital and improve operational efficiency. It would be advisable for the company to monitor its inventory turnover regularly and take corrective actions to maintain a healthy balance between stock levels and sales velocity.
Peer comparison
Dec 31, 2024
Dec 31, 2024