Zurn Elkay Water Solutions Corporation (ZWS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.49 | 114.83 | 163.97 | 125.24 | 66.38 |
| Days of sales outstanding (DSO) | days | 51.73 | 54.18 | 67.77 | 71.00 | 59.07 |
| Number of days of payables | days | 19.86 | 23.33 | 52.27 | 71.34 | 38.81 |
| Cash conversion cycle | days | 107.36 | 145.68 | 179.47 | 124.90 | 86.64 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 75.49 + 51.73 – 19.86
= 107.36
The cash conversion cycle of Zurn Elkay Water Solutions Corporation has shown fluctuations over the years.
As of March 31, 2020, the company's cash conversion cycle was 86.64 days, indicating that it took approximately 86.64 days for the company to convert its investments in inventory to cash.
By December 31, 2021, the cash conversion cycle had increased to 124.90 days, suggesting a longer period to convert inventory to cash.
The cycle further extended to 179.47 days by December 31, 2022, reaching its peak during this period. This increase may indicate challenges in managing working capital efficiently.
In the following year, by December 31, 2023, the cash conversion cycle decreased to 145.68 days, showing some improvement from the previous year but still above the initial levels.
As of December 31, 2024, the cash conversion cycle reduced to 107.36 days, reflecting a more efficient conversion of inventory to cash compared to the previous year.
Overall, fluctuations in the cash conversion cycle of Zurn Elkay Water Solutions Corporation indicate varying efficiency in managing its inventory, receivables, and payables. It is essential for the company to focus on optimizing its working capital management to ensure a healthy cash flow cycle.
Peer comparison
Dec 31, 2024