Zurn Elkay Water Solutions Corporation (ZWS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 112,700 | 61,700 | 120,900 | 180,100 | 34,300 |
| Total assets | US$ in thousands | 2,667,000 | 2,864,000 | 1,077,700 | 3,627,100 | 3,259,700 |
| ROA | 4.23% | 2.15% | 11.22% | 4.97% | 1.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $112,700K ÷ $2,667,000K
= 4.23%
The return on assets (ROA) of Zurn Elkay Water Solutions Corporation has fluctuated over the past five years. In 2021, the ROA was at its highest at 11.22%, indicating that the company generated 11.22 cents of profit for every dollar of assets it possessed. This was a significant improvement from the previous year's ROA of 2.15%. However, in 2023, the ROA decreased to 4.23%, suggesting a decrease in profitability relative to the previous year.
It is important to note that the ROA in 2020 and 2019 was 4.97% and 1.05% respectively. The ROA in 2019 was notably low, indicating that the company struggled to generate profits relative to its asset base. The gradual improvement in ROA over the years reflects a positive trend in the company's asset utilization and profitability.
Overall, the fluctuation in ROA over the years indicates varying levels of efficiency in utilizing assets to generate profits. Further analysis is recommended to understand the underlying factors contributing to these fluctuations and to assess the company's overall financial performance.
Peer comparison
Dec 31, 2023