Zurn Elkay Water Solutions Corporation (ZWS)
Liquidity ratios
| 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 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.70 | 3.31 | 3.02 | 3.14 | 2.98 | 2.97 | 2.62 | 2.44 | 2.44 | 2.42 | 1.98 | 3.00 | 2.99 | 2.84 | 2.82 | 2.52 | 2.78 | 2.79 | 2.94 | 2.74 |
| Quick ratio | 1.56 | 1.84 | 1.65 | 1.79 | 1.51 | 1.34 | 1.25 | 1.11 | 1.32 | 1.27 | 1.14 | 1.95 | 1.90 | 1.74 | 1.71 | 1.55 | 1.99 | 1.64 | 1.80 | 1.63 |
| Cash ratio | 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 | 0.77 |
Zurn Elkay Water Solutions Corporation's liquidity ratios indicate a generally healthy liquidity position over the past few quarters.
The current ratio has shown fluctuations over time, but the trend is generally positive, with the ratio consistently above 2. This indicates that the company has more than enough current assets to cover its current liabilities, providing a cushion for short-term obligations.
The quick ratio, which excludes inventory from current assets, also demonstrates a strong liquidity position, consistently above 1. This shows that the company can meet its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most conservative measure of liquidity, has shown some volatility but remains above 1 in most periods. This indicates that the company has sufficient cash on hand to cover its immediate liabilities without relying on selling other current assets, such as accounts receivable.
Overall, Zurn Elkay Water Solutions Corporation appears to have a strong liquidity position, with consistent current, quick, and cash ratios indicating its ability to meet short-term obligations effectively.
Additional liquidity measure
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 109.09 | 114.31 | 114.80 | 118.89 | 122.40 | 134.38 | 145.36 | 188.61 | 101.49 | 78.89 | 54.42 | 95.05 | 97.68 | 105.49 | 112.80 | 105.29 | 96.77 | 100.11 | 105.61 | 102.30 |
The cash conversion cycle of Zurn Elkay Water Solutions Corporation has shown fluctuations over the past few quarters. It gives insights into how long it takes for the company to convert its investments in inventory into cash receipts from customers.
On September 30, 2024, the cash conversion cycle was 109.09 days, indicating an improvement compared to the previous quarter. However, it is still higher than the optimal level, suggesting that the company may be facing challenges in efficiently managing its working capital.
The trend has been somewhat volatile, with fluctuations observed in the cycle over the past few quarters. The company experienced a peak cycle of 188.61 days on September 30, 2022, followed by a significant improvement to 54.42 days on March 31, 2022, before gradually increasing again.
Overall, a lower cash conversion cycle is preferable as it signifies that the company is able to efficiently manage its inventory and receivables, thereby generating cash flows more quickly. Zurn Elkay Water Solutions Corporation may need to focus on streamlining its operations and improving its working capital management to reduce the cash conversion cycle and enhance its overall financial performance.