Zurn Elkay Water Solutions Corporation (ZWS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.17% | 42.35% | 36.32% | 40.97% | 15.60% |
| Operating profit margin | 15.63% | 12.51% | 8.36% | 11.75% | 5.03% |
| Pretax margin | 13.31% | 10.15% | 6.90% | 13.57% | 8.92% |
| Net profit margin | 10.24% | 7.36% | 4.81% | 13.27% | 8.71% |
Zurn Elkay Water Solutions Corporation's profitability has shown mixed performance over the years based on the provided data on profitability ratios.
1. Gross Profit Margin:
- The company's gross profit margin has exhibited volatility during the period under review, ranging from a low of 15.60% on March 31, 2020, to a high of 45.17% on December 31, 2024.
- The trend indicates a general improvement in the efficiency of production and cost management, with the company achieving higher margins in recent years.
2. Operating Profit Margin:
- Zurn Elkay Water Solutions Corporation's operating profit margin has also experienced fluctuations over the years, with the highest margin recorded at 15.63% on December 31, 2024.
- The company has made progress in controlling operating expenses and enhancing operational efficiency, leading to improved profitability at the operating level.
3. Pre-tax Margin:
- The pre-tax margin of the company shows variability, with the highest margin of 13.31% observed on December 31, 2024.
- Despite fluctuations, there is a visible trend of enhancing profitability before accounting for taxes, indicating better management of costs and revenue generation.
4. Net Profit Margin:
- Zurn Elkay Water Solutions Corporation's net profit margin has demonstrated a similar pattern of fluctuation, reaching a peak of 13.27% on December 31, 2021.
- The net profit margin reflects the company's ability to generate profits after accounting for all expenses, taxes, and interest payments, with improvements seen in recent years.
In conclusion, while Zurn Elkay Water Solutions Corporation has shown improvements in profitability margins over the years, the fluctuations in these ratios suggest the need for continued focus on cost control, operational efficiency, and revenue enhancement to maintain and enhance overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.24% | 7.18% | 3.74% | 9.93% | 2.87% |
| Return on assets (ROA) | 6.05% | 4.23% | 2.15% | 11.22% | 4.97% |
| Return on total capital | 11.75% | 9.24% | 5.38% | 23.97% | 8.90% |
| Return on equity (ROE) | 10.10% | 7.03% | 3.82% | 95.65% | 13.74% |
Zurn Elkay Water Solutions Corporation's profitability ratios have shown fluctuations over the years.
1. Operating return on assets (Operating ROA) improved from 2.87% in March 2020 to a peak of 9.93% in December 2021 but declined to 3.74% by December 2022. There was a recovery in December 2023 to 7.18% and further improvement to 9.24% by December 2024.
2. Return on assets (ROA) started at 4.97% in March 2020, increased significantly to 11.22% by December 2021, but then dropped to 2.15% by December 2022. It gradually recovered to 6.05% by December 2024.
3. Return on total capital showed a similar trend, rising from 8.90% in March 2020 to a peak of 23.97% by December 2021, before falling to 5.38% by December 2022. It then improved to 11.75% by December 2024.
4. Return on equity (ROE) was at 13.74% in March 2020, saw a significant surge to 95.65% by December 2021, but then dropped to 3.82% in December 2022. It rebounded to 10.10% by December 2024.
Overall, the company experienced fluctuations in its profitability ratios over the years, with improvements and declines occurring in different periods. It is important for stakeholders to monitor these ratios closely to assess the company's financial performance and sustainability.