Zurn Elkay Water Solutions Corporation (ZWS)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,586,800 1,602,800 1,615,000 126,400 1,311,000
ROE 10.10% 7.03% 3.82% 95.65% 13.74%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $160,200K ÷ $1,586,800K
= 10.10%

Over the five-year period from March 31, 2020, to December 31, 2024, Zurn Elkay Water Solutions Corporation's return on equity (ROE) exhibited varying performance levels. The ROE stood at 13.74% in March 2020 and saw a significant increase to 95.65% by December 2021, indicating a substantial improvement in profitability and efficiency in generating returns for the shareholders.

However, the company's ROE dropped sharply to 3.82% by the end of December 2022, suggesting a decline in the company's ability to generate profits from shareholders' equity. This downturn in ROE may signal potential challenges or changes in the company's financial performance or capital structure during that period.

Subsequently, by December 2023 and December 2024, the ROE showed a moderate recovery, reaching 7.03% and 10.10%, respectively. Although there was an improvement from the lowest point in 2022, the ROE levels in 2023 and 2024 remained below the peak achieved in 2021.

Overall, the fluctuating trend in Zurn Elkay Water Solutions Corporation's ROE over the five-year period indicates shifts in the company's profitability and efficiency in utilizing shareholders' equity. The management may need to focus on enhancing operational performance, managing costs effectively, and optimizing the capital structure to sustain and improve ROE in the future.