Zurn Elkay Water Solutions Corporation (ZWS)
Return on total capital
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 202,000 |
| Long-term debt | US$ in thousands | 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 | 1,263,500 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,275,300 |
| Return on total capital | 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% | 7.96% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $216,500K ÷ ($494,700K + $1,586,500K)
= 10.40%
Zurn Elkay Water Solutions Corporation's return on total capital has displayed fluctuations over the past several quarters. The return on total capital is a key metric that reflects how efficiently a company is utilizing its capital to generate profits.
In the most recent quarter, ending September 30, 2024, the return on total capital stood at 10.40%, showing a slight improvement compared to the previous quarter. However, the return on total capital has been relatively stable and within a range of 5%-10% over the past few quarters, with occasional spikes and dips.
It is notable that the return on total capital was particularly high in the quarters of March 2022 and December 2021, reaching levels of 23.97% and 19.13%, respectively. These high returns suggest that during these periods, the company was effectively utilizing its capital to generate profits.
On the other hand, there have been quarters where the return on total capital dropped significantly, such as in September 2022 and December 2020, when it was 0.61% and 10.19%, respectively. These lower returns may indicate challenges in capital efficiency during those periods.
Overall, while the company has shown variations in its return on total capital, it is important to further investigate the underlying factors driving these fluctuations to ensure sustainable and efficient capital utilization in the future.
Peer comparison
Sep 30, 2024