Zurn Elkay Water Solutions Corporation (ZWS)
Working capital 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 current assets | US$ in thousands | 667,800 | 757,500 | 474,800 | 1,264,300 | 982,900 |
| Total current liabilities | US$ in thousands | 220,900 | 289,300 | 240,400 | 455,500 | 397,000 |
| Working capital turnover | 3.42 | 2.74 | 3.89 | 2.56 | 3.50 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,530,500K ÷ ($667,800K – $220,900K)
= 3.42
The working capital turnover of Zurn Elkay Water Solutions Corporation has shown fluctuations over the five-year period from March 31, 2019, to December 31, 2023. The ratios indicate how efficiently the company is utilizing its working capital to generate sales revenue.
The working capital turnover ratio increased from 3.50 in March 31, 2019, to 3.89 in December 31, 2021, indicating an improvement in the efficiency of the company's working capital management during this period. However, the ratio then decreased to 2.74 by December 31, 2022, suggesting a potential decline in the company's ability to generate sales relative to its working capital.
The most recent data available as of December 31, 2023, shows a working capital turnover ratio of 3.42, which indicates an improvement from the previous year but remains below the peak achieved in December 31, 2021. This suggests that Zurn Elkay Water Solutions Corporation may be facing some challenges in optimizing its working capital efficiency to drive sales growth.
Overall, the trend in working capital turnover for Zurn Elkay Water Solutions Corporation indicates variations in how effectively the company is managing its working capital to support its sales activities. It is important for the company to continue monitoring this ratio and implement strategies to enhance working capital efficiency to drive sustainable growth and profitability.
Peer comparison
Dec 31, 2023