Zurn Elkay Water Solutions Corporation (ZWS)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Mar 31, 2020
Net income US$ in thousands 160,200 112,700 61,700 120,900 180,100
Total assets US$ in thousands 2,648,500 2,667,000 2,864,000 1,077,700 3,627,100
ROA 6.05% 4.23% 2.15% 11.22% 4.97%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $160,200K ÷ $2,648,500K
= 6.05%

The return on assets (ROA) of Zurn Elkay Water Solutions Corporation has shown fluctuations over the past few years.

As of March 31, 2020, the ROA was 4.97%, indicating that the company generated a return of 4.97% on every dollar of assets it owns. This level of return suggests a modest performance in utilizing its assets efficiently.

By December 31, 2021, the ROA had improved significantly to 11.22%, reflecting a substantial increase in the company's ability to generate profits from its assets. This suggests that the company's asset management and operational efficiency had improved, resulting in higher returns for its shareholders.

However, there was a sharp decline in ROA by December 31, 2022, to 2.15%, indicating a potential decrease in the company's profitability relative to its assets. This decline may raise concerns about the company's operational effectiveness and its ability to generate returns for its stakeholders.

The ROA improved slightly by December 31, 2023, to 4.23%, indicating a small recovery in the company's profitability in relation to its assets. This improvement suggests some efforts to enhance operational efficiency and maximize asset utilization.

As of December 31, 2024, the ROA further increased to 6.05%, indicating a continued recovery in the company's ability to generate returns from its assets. This improvement may signal a positive trend in the company's operational performance and asset management.

In summary, the analysis of Zurn Elkay Water Solutions Corporation's ROA reveals fluctuations in profitability relative to its assets over the years, with notable improvements in some periods and challenges in others. It is essential for stakeholders to monitor these trends closely to assess the company's operational efficiency and financial performance effectively.