Zurn Elkay Water Solutions Corporation (ZWS)
Debt-to-equity 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-equity ratio | 0.31 | 0.31 | 0.33 | 4.22 | 1.07 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $494,800K ÷ $1,586,800K
= 0.31
The debt-to-equity ratio of Zurn Elkay Water Solutions Corporation has exhibited fluctuations over the years based on the provided data. As of March 31, 2020, the ratio was 1.07, indicating that the company had more debt than equity at that time. However, by December 31, 2021, the ratio had significantly increased to 4.22, suggesting a substantial increase in debt relative to equity.
Subsequently, the debt-to-equity ratio decreased notably to 0.33 by December 31, 2022, followed by a slight decrease to 0.31 by December 31, 2023, and maintained at the same level by December 31, 2024. This trend indicates a significant improvement in the company's capital structure, with lower levels of debt in relation to equity in the later years compared to the earlier periods.
Overall, the decreasing trend in the debt-to-equity ratio from 2021 onwards suggests that Zurn Elkay Water Solutions Corporation has been effectively managing its debt levels and gradually strengthening its financial position in terms of capital structure and leverage.
Peer comparison
Dec 31, 2024