Zurn Elkay Water Solutions Corporation (ZWS)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,531,100 | 1,549,900 | 1,532,800 | 1,530,500 | 1,502,500 | 1,523,700 | 1,409,800 | 1,282,100 | 1,140,500 | 1,277,000 | 1,554,600 | 1,834,900 | 2,100,000 | 1,989,500 | 2,024,100 | 1,984,100 | 2,011,200 | 2,068,300 | 2,083,700 | 2,081,800 |
| Total current assets | US$ in thousands | 722,100 | 755,100 | 696,500 | 667,800 | 721,300 | 688,900 | 681,800 | 757,500 | 800,500 | 588,400 | 520,100 | 474,800 | 1,262,700 | 1,144,900 | 1,013,000 | 1,015,500 | 1,015,300 | 1,264,300 | 968,600 | 1,013,500 |
| Total current liabilities | US$ in thousands | 247,800 | 279,200 | 210,600 | 220,900 | 229,800 | 231,500 | 229,600 | 289,300 | 328,700 | 241,200 | 214,500 | 240,400 | 420,700 | 382,700 | 356,300 | 360,000 | 403,000 | 455,500 | 347,300 | 344,800 |
| Working capital turnover | 3.23 | 3.26 | 3.15 | 3.42 | 3.06 | 3.33 | 3.12 | 2.74 | 2.42 | 3.68 | 5.09 | 7.83 | 2.49 | 2.61 | 3.08 | 3.03 | 3.28 | 2.56 | 3.35 | 3.11 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,531,100K ÷ ($722,100K – $247,800K)
= 3.23
The working capital turnover for Zurn Elkay Water Solutions Corporation has displayed fluctuations over the given period. Starting at 3.11 in September 2019, the ratio increased to 3.35 by December 2019, indicating a more efficient utilization of working capital to generate revenue. However, in March 2020, the ratio decreased to 2.56, possibly reflecting a slowed turnover of working capital.
Subsequently, there was an improvement as the ratio rose to 3.28 in June 2020, before slightly decreasing to 3.03 in September 2020. The trend continued with fluctuations but generally maintaining levels above 3, indicating steady turnover of working capital.
A significant spike was observed by the end of December 2021, where the working capital turnover ratio surged to 7.83, suggesting a substantial increase in the efficiency of utilizing working capital to drive revenue. The ratio declined in the following quarters but stayed relatively high compared to the initial periods.
Throughout the rest of the data series, the working capital turnover ratio ranged between 2.42 and 3.68, demonstrating variability but staying within a moderate range. The company seemed to generally maintain an acceptable level of efficiency in turning its working capital into revenue over the observed period.
Peer comparison
Dec 31, 2024