Zurn Elkay Water Solutions Corporation (ZWS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 244,600 | 193,800 | 115,400 | 158,300 | 241,100 |
| Long-term debt | US$ in thousands | 494,800 | 494,400 | 530,200 | 533,900 | 1,397,000 |
| Total stockholders’ equity | US$ in thousands | 1,586,800 | 1,602,800 | 1,615,000 | 126,400 | 1,311,000 |
| Return on total capital | 11.75% | 9.24% | 5.38% | 23.97% | 8.90% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $244,600K ÷ ($494,800K + $1,586,800K)
= 11.75%
The return on total capital for Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the years based on the provided data.
As of March 31, 2020, the return on total capital stood at 8.90%. This ratio indicates the company's ability to generate profit from its total capital employed.
By December 31, 2021, there was a significant improvement in the return on total capital, reaching 23.97%. This sharp increase suggests that the company might have made strategic decisions to enhance its profitability relative to the capital invested.
Subsequently, by December 31, 2022, there was a decline in the return on total capital to 5.38%. This decrease could signal potential challenges or inefficiencies in the company's operations during that period.
However, the return on total capital recovered by December 31, 2023, reaching 9.24%. This rebound might have been a result of corrective actions taken by the company to address the previous decline.
As of the latest available data by December 31, 2024, the return on total capital further improved to 11.75%. This upward trend indicates that Zurn Elkay Water Solutions Corporation was able to generate more profit relative to the total capital invested compared to the previous year.
Overall, it is essential for the company to consistently monitor and manage its return on total capital to ensure efficient use of resources and sustainable profitability in the long term.
Peer comparison
Dec 31, 2024