Zurn Elkay Water Solutions Corporation (ZWS)
Total asset 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 |
| Total assets | US$ in thousands | 2,667,000 | 2,864,000 | 1,077,700 | 3,627,100 | 3,259,700 |
| Total asset turnover | 0.57 | 0.45 | 0.85 | 0.57 | 0.63 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,530,500K ÷ $2,667,000K
= 0.57
The total asset turnover of Zurn Elkay Water Solutions Corporation has fluctuated over the past five years, with values ranging from 0.45 to 0.85. In 2021, the total asset turnover was at its highest level at 0.85, indicating that for every dollar of total assets, the company generated $0.85 in revenue. However, this ratio decreased to 0.57 in 2023, which suggests that the company's efficiency in generating sales revenue from its total assets has declined.
The fluctuations in the total asset turnover ratio may indicate changes in the company's operational efficiency, asset utilization, or revenue generation strategies over the years. A lower total asset turnover ratio could imply that the company is not effectively using its assets to generate sales, which may require further investigation into the company's operational processes and investment decisions.
It is important for Zurn Elkay Water Solutions Corporation to closely monitor its total asset turnover ratio and identify factors that may be impacting its efficiency in utilizing assets to generate revenue. By analyzing this ratio over time, the company can better understand its operational performance and make strategic decisions to improve its overall financial health.
Peer comparison
Dec 31, 2023