Zurn Elkay Water Solutions Corporation (ZWS)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 221,800 | 247,400 | 230,500 | 227,200 | 237,900 | 246,800 | 233,200 | 238,000 | 293,600 | 209,000 | 199,500 | 177,200 | 341,600 | 336,100 | 311,600 | 290,300 | 272,100 | 334,700 | 294,300 | 301,000 |
| 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 |
| Quick ratio | 1.69 | 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 |
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, ranging from 1.11 to 1.99. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
From September 30, 2019, to December 31, 2021, the quick ratio generally remained comfortably above 1, indicating the company had an adequate level of liquid assets to cover its short-term liabilities. However, there was a significant decrease in the quick ratio by the end of December 31, 2021, dropping to 1.14, which could be a cause for concern as it indicates a potential liquidity strain.
Subsequently, the quick ratio recovered in the following quarters, reaching a peak of 1.84 on March 31, 2024, suggesting an improvement in the company's ability to meet its short-term obligations. Overall, fluctuations in the quick ratio can reflect changes in the company's liquidity position and its ability to manage short-term financial challenges. Further analysis of the underlying reasons for these fluctuations would provide a more nuanced understanding of the company's financial health.
Peer comparison
Dec 31, 2024