Zurn Elkay Water Solutions Corporation (ZWS)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 676,600 | 685,300 | 669,400 | 648,100 | 601,600 | 572,100 | 512,400 | 465,500 | 441,300 | 396,700 | 386,700 | 373,200 | 380,500 | 364,600 | 477,300 | 580,600 | 696,300 | 818,000 | 803,300 | 795,900 |
| Revenue (ttm) | US$ in thousands | 1,531,100 | 1,549,900 | 1,532,800 | 1,530,500 | 1,502,500 | 1,523,700 | 1,409,800 | 1,282,100 | 1,140,500 | 1,277,000 | 1,554,600 | 1,834,900 | 2,100,000 | 1,989,500 | 2,024,100 | 1,984,100 | 2,011,200 | 2,068,300 | 2,083,700 | 2,081,800 |
| Gross profit margin | 44.19% | 44.22% | 43.67% | 42.35% | 40.04% | 37.55% | 36.35% | 36.31% | 38.69% | 31.06% | 24.87% | 20.34% | 18.12% | 18.33% | 23.58% | 29.26% | 34.62% | 39.55% | 38.55% | 38.23% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $676,600K ÷ $1,531,100K
= 44.19%
The gross profit margin of Zurn Elkay Water Solutions Corporation has displayed fluctuations over the period under analysis. Starting at 38.23% in September 2019, the margin increased slightly to 38.55% by December 2019, reflecting efficient cost management. There was a more significant improvement in March 2020, with the margin reaching 39.55%, indicating better control over the cost of goods sold.
However, the trend reversed in the subsequent quarters, with the gross profit margin declining to 34.62% in June 2020 and further dropping to 29.26% by September 2020. This decline might suggest challenges in maintaining profitability or potential cost pressures impacting the company's operations.
The margin continued to decrease, reaching a low of 18.33% in June 2021 and 18.12% in September 2021, indicating a period of financial difficulty or inefficiency in managing costs. There was a slight recovery in December 2021, as the margin increased to 20.34%, but it remained below previous levels.
From March 2022 onwards, there was a positive trend in the gross profit margin, reflecting improvements in cost control and operational efficiency. The margin increased steadily, reaching 44.19% by December 2024, indicating a strong performance in generating profit from sales after accounting for the cost of goods sold.
Overall, the gross profit margin analysis suggests that Zurn Elkay Water Solutions Corporation faced challenges in maintaining profitability in certain periods but managed to enhance its margin significantly in the later years. The company's ability to sustain and improve its gross profit margin over time is critical for long-term financial health and competitiveness.
Peer comparison
Dec 31, 2024