Zurn Elkay Water Solutions Corporation (ZWS)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 191,400 | 107,100 | 107,000 | 104,100 | 305,600 |
| Total assets | US$ in thousands | 2,667,000 | 2,864,000 | 1,077,700 | 3,627,100 | 3,259,700 |
| Operating ROA | 7.18% | 3.74% | 9.93% | 2.87% | 9.38% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $191,400K ÷ $2,667,000K
= 7.18%
Zurn Elkay Water Solutions Corporation's operating return on assets (operating ROA) has shown varying performance over the past five years. In 2023, the operating ROA improved to 7.18% from 3.74% in 2022, indicating a more efficient utilization of the company's assets to generate operating income. This improvement suggests that the company is managing its operating assets effectively and generating a higher return relative to the previous year.
However, compared to the peak performance in 2021 when the operating ROA was 9.93%, the 2023 figure still lags behind, indicating a potential room for further improvement. The significant drop in operating ROA in 2022 followed by the recovery in 2023 may reflect operational challenges or strategic adjustments that impacted the company's performance.
Furthermore, the operating ROA in 2023 is also lower than the levels seen in 2019 and 2020, suggesting that the company may need to focus on enhancing operational efficiency and asset utilization to achieve levels of profitability seen in the past.
Overall, Zurn Elkay Water Solutions Corporation's operating ROA trend indicates the importance of closely monitoring and improving asset management strategies to drive profitability and long-term sustainability.
Peer comparison
Dec 31, 2023