Zurn Elkay Water Solutions Corporation (ZWS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,602,800 | 1,615,000 | 126,400 | 1,311,000 | 1,228,600 |
| ROE | 7.03% | 3.82% | 95.65% | 13.74% | 2.79% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $112,700K ÷ $1,602,800K
= 7.03%
Zurn Elkay Water Solutions Corporation's return on equity (ROE) has varied over the past five years. In 2023, the ROE stood at 7.03%, showing a slight improvement compared to the previous year's 3.82%. However, it remains significantly lower than the exceptionally high ROE of 95.65% reported in 2021. This substantial decrease from 2021 to 2022 may indicate changes in the company's financial structure or profitability.
Looking back further, the ROE in 2020 was 13.74%, demonstrating a decline compared to 2021 but a notable improvement from the 2.79% reported in 2019. This fluctuation in ROE over the years suggests that Zurn Elkay Water Solutions Corporation's financial performance and efficiency in generating profits relative to shareholders' equity have been inconsistent.
It is essential for stakeholders to further investigate the factors driving these fluctuations in ROE to assess the company's financial health and sustainability. Evaluation of operating efficiency, profitability, and financial leverage can provide insights into the trends impacting ROE and guide decision-making processes regarding investment and strategic planning.
Peer comparison
Dec 31, 2023