Zurn Elkay Water Solutions Corporation (ZWS)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,586,800 1,586,500 1,613,900 1,602,800 1,611,600 1,588,600 1,599,500 1,615,000 1,618,600 229,400 193,700 126,400 1,642,500 1,584,300 1,489,800 1,395,500 1,350,800 1,311,000 1,365,600 1,318,700
ROE 8.07% 8.39% 7.70% 7.03% 7.01% 3.30% 3.39% 3.82% -1.17% 28.03% 52.19% 95.65% 14.17% 12.89% 10.71% 11.32% 12.53% 13.74% 14.56% 13.32%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $128,100K ÷ $1,586,800K
= 8.07%

The return on equity (ROE) of Zurn Elkay Water Solutions Corporation has fluctuated over the years. It stood at 13.32% as of September 30, 2019, showing a moderate return for shareholders. The ROE improved slightly to 14.56% by December 31, 2019, indicating better profitability relative to the company's equity.

However, the ROE experienced a decline to 11.32% by September 30, 2020, which could be a concern for investors as it signifies a lower return on equity. The trend continued to decrease to 10.71% by March 31, 2021, before rising to 14.17% by September 30, 2021, showing signs of recovery.

A notable anomaly occurred on December 31, 2021, where the ROE surged to 95.65%. This significant increase may raise questions regarding the underlying factors driving such a high return. Subsequently, the ROE saw a sharp decline to -1.17% by September 30, 2022, which is a negative return indicating potential financial difficulties.

The ROE gradually improved in the following quarters, reaching 8.07% by December 31, 2024, but still is relatively lower compared to previous periods. Overall, Zurn Elkay Water Solutions Corporation has experienced fluctuations in its return on equity, with some periods showing strong profitability while others raising concerns about the company's financial performance.