Zurn Elkay Water Solutions Corporation (ZWS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 667,800 | 757,500 | 474,800 | 1,264,300 | 982,900 |
| Total current liabilities | US$ in thousands | 220,900 | 289,300 | 240,400 | 455,500 | 397,000 |
| Current ratio | 3.02 | 2.62 | 1.98 | 2.78 | 2.48 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $667,800K ÷ $220,900K
= 3.02
The current ratio of Zurn Elkay Water Solutions Corporation has shown a consistent improvement over the past five years, indicating a strengthening liquidity position. As of Dec 31, 2023, the current ratio stands at 3.02, which means the company has $3.02 in current assets for every $1 in current liabilities. This reflects a significant increase from the previous year's ratio of 2.62, signifying that the company has enhanced its ability to cover its short-term obligations.
Comparing the current ratio to previous years, we observe a clear positive trend. In 2021, the ratio was 1.98, showing notable growth over the two-year period. Further back in 2020 and 2019, the company maintained current ratios of 2.78 and 2.48, respectively. This consistent upward trajectory suggests that Zurn Elkay Water Solutions Corporation has been effectively managing its current assets relative to its current liabilities.
Overall, the current ratio trend indicates that the company's liquidity position has strengthened significantly, providing a favorable outlook for meeting its short-term financial obligations efficiently. Further analysis of specific components of current assets and liabilities could provide deeper insights into the company's liquidity management strategies.
Peer comparison
Dec 31, 2023