Zurn Elkay Water Solutions Corporation (ZWS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 202,000 | 216,500 | 204,400 | 193,800 | 190,400 | 117,100 | 111,900 | 115,400 | 13,200 | 102,400 | 139,000 | 158,300 | 306,500 | 293,000 | 251,800 | 263,800 | 282,200 | 292,800 | 320,100 | 295,100 |
| Long-term debt | US$ in thousands | 494,800 | 494,700 | 494,500 | 494,400 | 547,900 | 549,100 | 550,300 | 530,200 | 531,300 | 531,900 | 532,900 | 533,900 | 1,189,300 | 1,189,500 | 1,189,300 | 1,192,600 | 1,148,000 | 1,397,000 | 1,147,200 | 1,249,300 |
| 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 |
| Return on total capital | 9.70% | 10.40% | 9.69% | 9.24% | 8.82% | 5.48% | 5.21% | 5.38% | 0.61% | 13.45% | 19.13% | 23.97% | 10.82% | 10.56% | 9.40% | 10.19% | 11.29% | 10.81% | 12.74% | 11.49% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $202,000K ÷ ($494,800K + $1,586,800K)
= 9.70%
Zurn Elkay Water Solutions Corporation's return on total capital has shown fluctuations over the past few years. The trend indicates that the company's performance in generating returns from its total capital has varied.
From September 2019 to December 2021, the return on total capital ranged between 10.19% and 23.97%. This period included some relatively high returns, especially in December 2021, where the return spiked significantly.
However, the return on total capital dropped notably in September 2022 to a mere 0.61%. This sharp decline suggests a potential issue in efficiently utilizing the company's total capital to generate returns. Notably, the returns in the following quarters remained relatively low, albeit showing an upward trend from March 2023 onwards.
By the end of December 2024, the return on total capital had slightly improved to 9.70%. Overall, the fluctuating pattern in the return on total capital of Zurn Elkay Water Solutions Corporation indicates the need for a closer examination of the company's capital allocation strategies and operational efficiency to ensure sustained and optimal returns in the future.
Peer comparison
Dec 31, 2024