Zurn Elkay Water Solutions Corporation (ZWS)
Payables 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 |
| Payables | US$ in thousands | 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 | 179,900 |
| Payables turnover | 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 | 7.20 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,320,700K ÷ $94,700K
= 13.95
The payables turnover ratio for Zurn Elkay Water Solutions Corporation has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers.
The trend in the payables turnover ratio shows a general decrease from a high of 23.62 in December 2023 to a low of 6.82 in September 2022, before increasing again. This suggests that the company has been taking longer to pay off its suppliers in recent quarters compared to earlier periods.
The jump in the ratio from 6.82 in September 2022 to 15.57 in March 2023 indicates an improvement in the efficiency of payables management, which was further enhanced with a peak of 23.62 in December 2023. However, this trend reversed, with a decline in the ratio in the subsequent quarters.
The lower payables turnover ratios in recent quarters compared to the higher ratios achieved in 2023 might signify delayed payments to suppliers or a change in payment terms negotiated with suppliers. It is important for the company to monitor this ratio closely to ensure the efficient management of its accounts payable and maintain positive relationships with its suppliers.
Peer comparison
Sep 30, 2024