Zurn Elkay Water Solutions Corporation (ZWS)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.24 | 0.23 | 0.24 | 0.25 | 0.26 | 0.26 | 0.25 | 0.25 | 0.70 | 0.73 | 0.81 | 0.42 | 0.43 | 0.44 | 0.46 | 0.46 | 0.52 | 0.46 | 0.49 | 0.50 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $494,700K ÷ ($494,700K + $1,586,500K)
= 0.24
The debt-to-capital ratio of Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the past several quarters. The ratio stood at 0.24 as of September 30, 2024, which indicates that 24% of the company's capital structure was financed through debt at that point in time.
Looking at the trend, we observe that the ratio has been relatively stable around the 0.24 to 0.26 range in recent quarters, suggesting a consistent mix of debt and equity in the company's capital structure. However, there was a significant increase in the ratio during the second quarter of 2022 when it rose to 0.73 before peaking at 0.81 in the following quarter. This spike may indicate a temporary shift towards higher debt levels or a decrease in equity.
The ratio then started to decline gradually, reaching 0.25 in the last two reported quarters. The sudden increase and subsequent decrease in the ratio over 2022 may suggest a strategic decision by the company to adjust its capital structure for various reasons, such as financing growth opportunities, repaying debt, or managing risk.
The average debt-to-capital ratio over the entire period analyzed is approximately 0.45, indicating that debt has represented, on average, 45% of the company's total capital during this timeframe. It is essential for investors and stakeholders to monitor this ratio regularly, as significant shifts can signal changes in the company's financial risk profile and investment attractiveness.
Peer comparison
Sep 30, 2024