Zurn Elkay Water Solutions Corporation (ZWS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 494,400 | 530,200 | 533,900 | 1,397,000 | 1,236,800 |
| Total stockholders’ equity | US$ in thousands | 1,602,800 | 1,615,000 | 126,400 | 1,311,000 | 1,228,600 |
| Debt-to-capital ratio | 0.24 | 0.25 | 0.81 | 0.52 | 0.50 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $494,400K ÷ ($494,400K + $1,602,800K)
= 0.24
The debt-to-capital ratio of Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the past five reporting periods. In 2023 and 2022, the company's debt-to-capital ratio decreased to 0.24 and 0.25, respectively, indicating a lower level of debt relative to its capital structure. This suggests that the company may be relying less on debt financing compared to the previous years.
On the contrary, in 2021, the debt-to-capital ratio spiked significantly to 0.81, which may indicate a higher proportion of debt in the company's capital structure. This substantial increase in leverage could imply higher financial risk and interest obligations for the company during that period.
In 2020 and 2019, the debt-to-capital ratios were 0.52 and 0.50, respectively, showing a moderate level of debt utilization in the company's capital structure.
Overall, the trend in the debt-to-capital ratio of Zurn Elkay Water Solutions Corporation suggests varying degrees of leverage over the years, with 2021 standing out as a year of heightened debt reliance. It is essential for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023