Zurn Elkay Water Solutions Corporation (ZWS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,648,500 | 2,667,000 | 2,864,000 | 1,077,700 | 3,627,100 |
| Total stockholders’ equity | US$ in thousands | 1,586,800 | 1,602,800 | 1,615,000 | 126,400 | 1,311,000 |
| Financial leverage ratio | 1.67 | 1.66 | 1.77 | 8.53 | 2.77 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,648,500K ÷ $1,586,800K
= 1.67
The financial leverage ratio of Zurn Elkay Water Solutions Corporation has fluctuated over the years. As of March 31, 2020, the ratio stood at 2.77, indicating that the company had a higher level of debt relative to its equity. Subsequently, by December 31, 2021, the ratio increased significantly to 8.53, suggesting a substantial increase in financial leverage.
However, there was a notable decline in the financial leverage ratio by December 31, 2022, where it dropped to 1.77. This reduction implies that the company had a lower level of debt compared to equity, signaling a potentially improved financial position in terms of leverage.
The trend continued to December 31, 2023, with a slightly lower ratio of 1.66, indicating that the company maintained a stable financial leverage position. By December 31, 2024, the financial leverage ratio remained relatively consistent at 1.67, reinforcing the company's favorable debt-to-equity ratio.
Overall, the fluctuation in the financial leverage ratio of Zurn Elkay Water Solutions Corporation suggests varying levels of debt utilization over the years, with a notable increase followed by a subsequent decrease, ultimately leading to a more balanced leverage position. It is essential for the company to carefully manage its debt levels to maintain a sustainable financial structure.
Peer comparison
Dec 31, 2024