Zurn Elkay Water Solutions Corporation (ZWS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,000 | 136,700 | 124,800 | 96,600 | 573,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 247,800 | 220,900 | 289,300 | 240,400 | 455,500 |
| Cash ratio | 0.80 | 0.62 | 0.43 | 0.40 | 1.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($198,000K
+ $—K)
÷ $247,800K
= 0.80
The cash ratio of Zurn Elkay Water Solutions Corporation has shown varying trends over the years. As of March 31, 2020, the cash ratio was 1.26, indicating that the company had $1.26 in cash and cash equivalents for every $1 of current liabilities.
However, there was a significant decline in the cash ratio by December 31, 2021, dropping to 0.40. This suggests that the company's liquidity position weakened, with only $0.40 in cash and cash equivalents for every $1 of current liabilities.
The cash ratio improved slightly by December 31, 2022, reaching 0.43, but it was still below the ideal benchmark of 1. This indicates that the company may still be facing liquidity challenges.
By December 31, 2023, the cash ratio further increased to 0.62, showing some improvement in the company's liquidity position. However, the ratio is still below 1, indicating that the company may need to manage its cash position more effectively.
As of December 31, 2024, the cash ratio further improved to 0.80, signaling better liquidity compared to the previous years. While the trend is positive, the company should continue to monitor and actively manage its cash levels to ensure sufficient liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024