Zurn Elkay Water Solutions Corporation (ZWS)
Payables 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 |
| Payables | US$ in thousands | 71,700 | 56,400 | 116,900 | 105,100 | 185,600 |
| Payables turnover | 18.38 | 15.65 | 6.98 | 5.12 | 9.41 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,318,000K ÷ $71,700K
= 18.38
Based on the provided data, the payables turnover ratio for Zurn Elkay Water Solutions Corporation has fluctuated over the years.
In March 31, 2020, the payables turnover ratio was 9.41, indicating that the company was able to pay off its accounts payable 9.41 times during that period. This may suggest that the company was effectively managing its accounts payable and maintaining good liquidity.
However, by December 31, 2021, the payables turnover ratio declined to 5.12, which could indicate a slower rate of paying off its accounts payable compared to the previous year. This may raise concerns about potential cash flow issues or changes in payment practices.
The ratio improved in the following years, reaching 6.98 by December 31, 2022, and then showing a significant increase to 15.65 by December 31, 2023. This sharp increase may suggest that the company improved its efficiency in managing its payables, possibly negotiating better payment terms with suppliers or optimizing its working capital management.
By December 31, 2024, the payables turnover ratio further increased to 18.38, indicating that the company was paying off its accounts payable nearly 18 times during that period. This substantial increase may indicate a strong ability to manage its payables effectively and maintain healthy supplier relationships.
Overall, the trend in payables turnover for Zurn Elkay Water Solutions Corporation shows fluctuations but generally suggests improvements in managing accounts payable efficiently over the years. It is important for stakeholders to monitor these ratios to assess the company's liquidity, cash flow management, and supplier relationships.
Peer comparison
Dec 31, 2024