Zurn Elkay Water Solutions Corporation (ZWS)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,078,700 |
| Total current assets | US$ in thousands | 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 | 969,400 |
| Total current liabilities | US$ in thousands | 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 | 354,300 |
| Working capital turnover | 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 | 3.38 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,549,900K ÷ ($755,100K – $279,200K)
= 3.26
The working capital turnover of Zurn Elkay Water Solutions Corporation has fluctuated over the past few quarters, ranging from a low of 2.42 to a high of 7.83. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio indicates that the company is able to efficiently use its resources to generate sales.
The working capital turnover has generally been on an upward trend since the end of 2021, with some fluctuations along the way. The company saw a significant increase in the ratio in the first quarter of 2022, reaching a peak of 7.83, possibly indicating improved efficiency in utilizing working capital during that period. However, the ratio dropped in the following quarters but remained above the levels seen before 2022.
Overall, the working capital turnover of Zurn Elkay Water Solutions Corporation shows variability over time, with some quarters demonstrating stronger efficiency in utilizing working capital compared to others. Further analysis and comparison with industry benchmarks may provide more insights into the company's management of working capital.
Peer comparison
Sep 30, 2024