Zurn Elkay Water Solutions Corporation (ZWS)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.24 | 0.24 | 0.25 | 0.81 | 0.52 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $494,800K ÷ ($494,800K + $1,586,800K)
= 0.24
The debt-to-capital ratio of Zurn Elkay Water Solutions Corporation has shown fluctuations over the years. As of March 31, 2020, the ratio was 0.52, indicating that more than half of the company's capital was financed through debt. By December 31, 2021, the ratio increased significantly to 0.81, suggesting a higher reliance on debt for capital. However, in the following years, the debt-to-capital ratio decreased, reaching 0.25 by December 31, 2022, and remaining stable at 0.24 from December 31, 2023, onwards. This decline in the ratio may imply that the company has reduced its debt levels relative to its capital, potentially improving its overall financial stability and reducing the risks associated with high debt levels.
Peer comparison
Dec 31, 2024