Zurn Elkay Water Solutions Corporation (ZWS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 136,700 | 124,800 | 96,600 | 573,400 | 292,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 227,200 | 238,000 | 177,200 | 334,700 | 337,600 |
| Total current liabilities | US$ in thousands | 220,900 | 289,300 | 240,400 | 455,500 | 397,000 |
| Quick ratio | 1.65 | 1.25 | 1.14 | 1.99 | 1.59 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($136,700K
+ $—K
+ $227,200K)
÷ $220,900K
= 1.65
The quick ratio of Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio improved to 1.65, indicating an increase in the company's ability to cover its current liabilities with its quick assets. This may suggest improved liquidity and financial stability compared to the previous year.
However, in 2022 and 2021, the quick ratios were 1.25 and 1.14, respectively, which were lower than the 2023 ratio. This implies that the company may have had difficulty meeting its short-term obligations with its quick assets during those years.
In contrast, the quick ratios for March 31, 2020, and March 31, 2019, were 1.99 and 1.59, respectively. These higher ratios indicate a stronger ability to cover current liabilities with quick assets during those periods.
Overall, the trend in the quick ratio for Zurn Elkay Water Solutions Corporation has shown variability over the years, with improvements in liquidity in some years and potential challenges in others. It is important for the company to maintain a healthy quick ratio to ensure its short-term financial health and meet its obligations promptly.
Peer comparison
Dec 31, 2023