Zurn Elkay Water Solutions Corporation (ZWS)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 114.83 | 163.97 | 125.24 | 66.38 | 91.24 |
| Days of sales outstanding (DSO) | days | 54.18 | 67.77 | 71.00 | 59.07 | 60.08 |
| Number of days of payables | days | 23.33 | 52.27 | 71.34 | 38.81 | 55.26 |
| Cash conversion cycle | days | 145.68 | 179.47 | 124.90 | 86.64 | 96.06 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 114.83 + 54.18 – 23.33
= 145.68
The cash conversion cycle of Zurn Elkay Water Solutions Corporation has shown some fluctuations over the past five years. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In 2023, the cash conversion cycle decreased to 145.68 days from 179.47 days in 2022. This reduction indicates an improvement in the company's efficiency in managing its working capital during that period. However, the cycle is still higher compared to 2021 when it was 124.90 days.
Looking back to 2020 and 2019, Zurn Elkay Water Solutions Corporation experienced fluctuations in its cash conversion cycle. In 2020, the company reduced its cycle significantly to 86.64 days, indicating a more efficient management of its working capital. However, this improvement was not sustained in 2021, when the cycle increased to 96.06 days.
Overall, the trend in the cash conversion cycle of Zurn Elkay Water Solutions Corporation shows some variations over the years, with periods of improvement and slowdown. It is important for the company to continue monitoring and optimizing its working capital management to ensure efficient operations and positive cash flows in the future.
Peer comparison
Dec 31, 2023