Zurn Elkay Water Solutions Corporation (ZWS)
Payables 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 |
| Payables | US$ in thousands | 71,700 | 94,700 | 70,200 | 56,400 | 60,700 | 66,700 | 84,000 | 116,900 | 144,500 | 126,100 | 113,700 | 105,100 | 210,300 | 191,400 | 179,000 | 157,000 | 160,100 | 185,600 | 178,400 | 158,700 |
| Payables turnover | 18.03 | 13.95 | 18.94 | 23.62 | 22.00 | 21.37 | 15.57 | 10.05 | 6.82 | 8.13 | 11.08 | 14.38 | 8.57 | 8.98 | 7.01 | 7.78 | 7.69 | 6.88 | 7.20 | 8.09 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,293,100K ÷ $71,700K
= 18.03
The payables turnover ratio of Zurn Elkay Water Solutions Corporation has fluctuated over the years, from a low of 6.88 in March 2020 to a high of 23.62 in December 2023. This ratio indicates how many times a company pays off its accounts payable during a specific period.
A higher payables turnover ratio generally indicates that the company is efficiently managing its accounts payable by paying off its suppliers more frequently. Conversely, a lower ratio could suggest that the company is taking longer to pay its suppliers, potentially indicating poor liquidity management or strained supplier relationships.
It is noteworthy that there have been significant fluctuations in the payables turnover ratio, with peaks and troughs observed across different reporting periods. This could be due to various factors such as changes in purchasing patterns, negotiation terms with suppliers, or shifts in the company's working capital management strategy.
Overall, a thorough analysis of the trend in the payables turnover ratio can help assess the company's efficiency in managing its accounts payable and its relationships with suppliers.
Peer comparison
Dec 31, 2024