Zurn Elkay Water Solutions Corporation (ZWS)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 128,100 133,100 124,200 112,700 113,000 52,500 54,300 61,700 -18,900 64,300 101,100 120,900 232,700 204,200 159,500 158,000 169,200 180,100 198,800 175,700
Total assets US$ in thousands 2,648,500 2,704,800 2,664,200 2,667,000 2,812,900 2,802,000 2,810,000 2,864,000 2,927,000 1,176,300 1,118,600 1,077,700 3,689,100 3,602,300 3,487,300 3,405,400 3,367,200 3,627,100 3,261,600 3,311,000
ROA 4.84% 4.92% 4.66% 4.23% 4.02% 1.87% 1.93% 2.15% -0.65% 5.47% 9.04% 11.22% 6.31% 5.67% 4.57% 4.64% 5.02% 4.97% 6.10% 5.31%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $128,100K ÷ $2,648,500K
= 4.84%

Based on the provided data, Zurn Elkay Water Solutions Corporation's return on assets (ROA) has fluctuated over the years. The ROA started at 5.31% in September 2019, increased to 11.22% by December 2021, and then declined to -0.65% in September 2022 before gradually recovering. As of December 31, 2024, the ROA stands at 4.84%.

The variability in ROA indicates changes in the company's ability to generate profits from its assets. The peak in December 2021 suggests a period of strong asset utilization and profitability, while the negative ROA in September 2022 raises concerns about potential asset inefficiencies or financial challenges. The subsequent recovery indicates management actions to improve asset performance.

It is essential for Zurn Elkay Water Solutions Corporation to investigate the factors contributing to these fluctuations in ROA to ensure sustainable profitability and efficient asset management in the future.