Zurn Elkay Water Solutions Corporation (ZWS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 198,000 | 136,700 | 124,800 | 96,600 | 573,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 221,800 | 227,200 | 238,000 | 177,200 | 334,700 |
| Total current liabilities | US$ in thousands | 247,800 | 220,900 | 289,300 | 240,400 | 455,500 |
| Quick ratio | 1.69 | 1.65 | 1.25 | 1.14 | 1.99 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($198,000K
+ $—K
+ $221,800K)
÷ $247,800K
= 1.69
The quick ratio of Zurn Elkay Water Solutions Corporation has shown some fluctuations over the years. As of December 31, 2024, the quick ratio stands at 1.69, indicating that the company has $1.69 in liquid assets available to cover each dollar of current liabilities. This signifies a strong ability to meet short-term obligations using its most liquid assets.
Looking back, the quick ratio was at its lowest on December 31, 2021, at 1.14, suggesting a relatively tighter liquidity position at that time. However, since then, the company has improved its liquidity position gradually, with the quick ratio increasing to 1.25 on December 31, 2022, and further to 1.65 on December 31, 2023, before reaching the current level of 1.69.
Overall, the trend in the quick ratio indicates that Zurn Elkay Water Solutions Corporation has been effectively managing its short-term liquidity and has strengthened its ability to cover immediate liabilities with liquid assets over the years. However, it is important for the company to continue monitoring and maintaining its liquidity position to ensure ongoing financial stability.
Peer comparison
Dec 31, 2024