Zurn Elkay Water Solutions Corporation (ZWS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.35% | 36.32% | 40.97% | 15.60% | 38.27% |
| Operating profit margin | 12.51% | 8.36% | 11.75% | 5.03% | 14.90% |
| Pretax margin | 10.15% | 6.90% | 13.57% | 8.92% | 4.28% |
| Net profit margin | 7.36% | 4.81% | 13.27% | 8.71% | 1.67% |
Zurn Elkay Water Solutions Corporation's profitability ratios have shown varying trends over the past five years. The gross profit margin increased from 36.32% in 2022 to 42.35% in 2023, indicating an improvement in the company's ability to generate profits from its revenue after accounting for the cost of goods sold.
The operating profit margin also exhibited a positive trend, rising from 8.36% in 2022 to 12.51% in 2023. This suggests that the company's operating efficiency and cost management improved, resulting in higher profits from its core business operations.
However, the pretax margin decreased from 13.57% in 2021 to 10.15% in 2023, indicating a reduction in the company's profitability before accounting for income taxes. This could be attributed to changes in tax regulations, increased operating expenses, or other factors affecting the company's pre-tax profitability.
Similarly, the net profit margin fluctuated over the years, with a notable decrease in 2022 compared to 2021. The net profit margin improved from 4.81% in 2022 to 7.36% in 2023, reflecting the company's ability to generate higher profits after accounting for all expenses, including taxes and interest payments.
Overall, Zurn Elkay Water Solutions Corporation's profitability ratios demonstrate a mix of positive and negative trends, emphasizing the importance of closely monitoring financial performance metrics to assess the company's overall profitability and financial health.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.18% | 3.74% | 9.93% | 2.87% | 9.38% |
| Return on assets (ROA) | 4.23% | 2.15% | 11.22% | 4.97% | 1.05% |
| Return on total capital | 9.24% | 5.38% | 23.97% | 8.90% | 6.39% |
| Return on equity (ROE) | 7.03% | 3.82% | 95.65% | 13.74% | 2.79% |
Zurn Elkay Water Solutions Corporation's profitability ratios show a mixed performance over the past five years. In terms of Operating Return on Assets (Operating ROA), the company has demonstrated a fluctuating trend, with a peak of 9.93% in 2021, followed by a decrease in 2022 and then a notable improvement to 7.18% in 2023. This indicates the efficiency of the company in generating operating profits relative to its total assets, with a positive uptick in the latest financial year.
Return on Assets (ROA) also showcases variation across the analyzed period, reaching a high of 11.22% in 2021, dropping in 2022, and recovering slightly in 2023 to 4.23%. This metric reflects the company's ability to generate profits from its total assets, with a notable decline in profitability observed in the two most recent years.
Return on Total Capital indicates the overall return generated by the company's total capital, including both debt and equity. Zurn Elkay Water Solutions Corporation has shown an increase in this ratio from 2019 to 2021, achieving its peak of 23.97% in 2021, followed by a slight decrease in 2022 and a further improvement to 9.24% in 2023. This suggests that the company has been successful in generating returns for its total capital employed, although the fluctuating nature of the metric warrants attention.
Return on Equity (ROE) has also demonstrated a mixed performance, with a significant increase to 95.65% in 2021, indicating a strong return to the equity shareholders. However, this was followed by a decrease in 2022 and a further decline to 7.03% in 2023, reflecting a more subdued profitability performance relative to the equity invested in the company.
In conclusion, Zurn Elkay Water Solutions Corporation's profitability ratios show a varied trend over the past five years, with fluctuations in performance across different metrics. The company's ability to generate profits from its assets, total capital, and equity has shown both strengths and weaknesses, highlighting the importance of ongoing monitoring and strategic decision-making to enhance overall profitability.