Zurn Elkay Water Solutions Corporation (ZWS)

Based on the provided data, Zurn Elkay Water Solutions Corporation's solvency ratios show some fluctuations over the years.

1. Debt-to-assets ratio:
- The company's debt-to-assets ratio has decreased from 0.39 in March 2020 to 0.19 by December 2022, and this ratio remained stable at 0.19 through December 2024. A lower debt-to-assets ratio indicates that a smaller portion of the company's assets is financed by debt.

2. Debt-to-capital ratio:
- Zurn Elkay's debt-to-capital ratio increased significantly from 0.52 in March 2020 to 0.81 by December 2021. However, the ratio improved to 0.24 by December 2023 and remained the same in December 2024. This indicates that the company has managed to reduce its dependency on debt to finance its operations.

3. Debt-to-equity ratio:
- The debt-to-equity ratio surged from 1.07 in March 2020 to 4.22 by December 2021, reflecting a substantial increase in leverage. However, the ratio improved significantly to 0.31 by December 2023 and remained steady at 0.31 in December 2024. This suggests a healthier balance between debt and equity financing.

4. Financial leverage ratio:
- The financial leverage ratio also saw a significant increase from 2.77 in March 2020 to 8.53 by December 2021. However, the ratio decreased consistently to 1.67 by December 2024, indicating that the company has been able to reduce its financial risk and control its leverage position over time.

In conclusion, Zurn Elkay Water Solutions Corporation has shown improvements in its solvency position over the years, with better debt management and a healthier debt-to-equity structure, leading to reduced financial risk and improved stability in its capital structure.

---

Coverage ratios

Based on the provided data, Zurn Elkay Water Solutions Corporation has shown a relatively stable interest coverage ratio over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.

In March 2020, the interest coverage ratio was 4.26, indicating that the company's operating income was able to cover its interest expenses approximately four times over. By December 2021, the ratio had improved slightly to 4.56, suggesting a modest increase in the company's ability to meet its interest payments.

Throughout 2022 and 2023, the interest coverage ratio hovered around 4.29 and 5.03, respectively, showing a consistent performance in managing its interest obligations. However, by the end of December 2024, the ratio significantly improved to 7.39, indicating a substantial increase in the company's ability to cover its interest expenses with its operating income.

Overall, the trend in Zurn Elkay Water Solutions Corporation's interest coverage ratio demonstrates a reasonable ability to meet its interest payments over the years, with a notable improvement in 2024. This suggests a positive financial health in terms of managing its debt obligations. It's important to note that while the trend appears favorable, it would be advisable to monitor this ratio along with other financial metrics to assess the company's overall financial stability effectively.