Zurn Elkay Water Solutions Corporation (ZWS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 136,700 | 124,800 | 96,600 | 573,400 | 292,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 220,900 | 289,300 | 240,400 | 455,500 | 397,000 |
| Cash ratio | 0.62 | 0.43 | 0.40 | 1.26 | 0.74 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($136,700K
+ $—K)
÷ $220,900K
= 0.62
The cash ratio of Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the past five years. The cash ratio, which measures a company's ability to cover short-term liabilities with its cash and cash equivalents, was 0.62 as of December 31, 2023. This indicates that for every dollar of current liabilities, the company had $0.62 in cash and cash equivalents available.
Compared to the previous years, the cash ratio has shown a mixed trend. In 2022, the ratio was 0.43, in 2021 it was 0.40, and in 2020 it was significantly higher at 1.26. The sharp increase in the cash ratio in 2020 suggests that the company had a higher proportion of cash and cash equivalents relative to its short-term obligations at that time.
However, in 2019, the cash ratio was 0.74, which was higher than in 2022 and 2023 but lower than in 2020. This indicates that the company had a relatively stronger liquidity position in 2019 compared to the most recent years.
Overall, the trend in the cash ratio of Zurn Elkay Water Solutions Corporation suggests variations in its ability to meet short-term obligations with available cash and cash equivalents. It is important for investors and stakeholders to monitor these fluctuations to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023