Zurn Elkay Water Solutions Corporation (ZWS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,530,500 | 1,281,800 | 910,900 | 2,068,300 | 2,050,900 |
| Receivables | US$ in thousands | 227,200 | 238,000 | 177,200 | 334,700 | 337,600 |
| Receivables turnover | 6.74 | 5.39 | 5.14 | 6.18 | 6.07 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,530,500K ÷ $227,200K
= 6.74
The receivables turnover ratio of Zurn Elkay Water Solutions Corporation has shown a fluctuating trend over the past five years. In 2023, the company's receivables turnover ratio increased to 6.74 from 5.39 in 2022, indicating that the company collected its accounts receivable more efficiently compared to the previous year. This improvement suggests that the company was able to convert its accounts receivable into cash more quickly in 2023.
Looking further back, in 2021, the receivables turnover ratio was 5.14, which was lower than both 2022 and 2023. The ratio increased in 2022 and continued to rise in 2023, indicating an improving trend in collecting receivables. The ratio was relatively steady in 2020 and 2019 at 6.18 and 6.07, respectively.
Overall, the increasing trend in the receivables turnover ratio from 2021 to 2023 suggests that Zurn Elkay Water Solutions Corporation has been managing its accounts receivable more effectively and efficiently. This improvement indicates that the company has been successful in converting credit sales into cash, which can positively impact its liquidity and overall financial health.
Peer comparison
Dec 31, 2023