Zurn Elkay Water Solutions Corporation (ZWS)
Debt-to-equity ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 494,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,586,800 | 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 |
| Debt-to-equity ratio | 0.31 | 0.31 | 0.31 | 0.31 | 0.34 | 0.35 | 0.34 | 0.33 | 0.33 | 2.32 | 2.75 | 4.22 | 0.72 | 0.75 | 0.80 | 0.85 | 0.85 | 1.07 | 0.84 | 0.95 |
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 shows fluctuations over the years, indicating changes in the company's capital structure and financial leverage.
From September 30, 2019, to March 31, 2020, the ratio increased from 0.95 to 1.07, indicating higher reliance on debt financing compared to equity. However, from March 31, 2020, to June 30, 2021, the ratio decreased steadily, reaching 0.75 by the end of June 2021. This decline suggests a reduction in the company's debt levels relative to equity during this period.
The ratio then experienced a significant spike from 0.75 as of June 30, 2021, to 4.22 by December 31, 2021. Such a sharp increase may imply a substantial increase in debt compared to equity, signaling potential financial risk and liquidity concerns.
Subsequently, Zurn Elkay Water Solutions Corporation managed to bring down the ratio to more sustainable levels, with the ratio declining to 0.31 from December 31, 2021, to December 31, 2024. This reduction indicates a healthier balance between debt and equity financing as the company worked towards improving its financial position and reducing leverage.
Overall, monitoring the debt-to-equity ratio of Zurn Elkay Water Solutions Corporation provides insights into the company's financial health, risk exposure, and capital structure decisions over time.
Peer comparison
Dec 31, 2024