Zurn Elkay Water Solutions Corporation (ZWS)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 198,000 | 187,900 | 157,100 | 136,700 | 173,100 | 103,000 | 74,800 | 124,800 | 71,900 | 110,400 | 73,200 | 96,600 | 477,600 | 390,700 | 307,300 | 326,600 | 353,400 | 573,400 | 277,000 | 319,800 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 247,800 | 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 |
| Cash ratio | 0.80 | 0.67 | 0.75 | 0.62 | 0.75 | 0.44 | 0.33 | 0.43 | 0.22 | 0.46 | 0.34 | 0.40 | 1.14 | 1.02 | 0.86 | 0.91 | 0.88 | 1.26 | 0.80 | 0.93 |
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 fluctuations over the period from September 30, 2019, to December 31, 2024. The cash ratio measures a company's ability to cover its short-term obligations with its cash and cash equivalents.
The analysis reveals that the cash ratio ranged from a low of 0.22 on September 30, 2022, to a high of 1.26 on March 31, 2020, indicating significant variability in the company's liquidity position. The ratio decreased notably to 0.40 on December 31, 2021, suggesting a potential strain on the company's ability to meet its short-term obligations with available cash.
However, the cash ratio improved in subsequent periods, reaching 0.75 on March 31, 2023, and maintaining relatively stable levels above 0.60 until December 31, 2024, when it stood at 0.80. This indicates that the company enhanced its ability to cover its short-term liabilities with cash over time.
Overall, it is essential for the company to carefully manage its cash resources to ensure it maintains a healthy cash ratio, as fluctuations in this ratio can impact the company's ability to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024