Zurn Elkay Water Solutions Corporation (ZWS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,648,500 | 2,704,800 | 2,664,200 | 2,667,000 | 2,812,900 | 2,802,000 | 2,810,000 | 2,864,000 | 2,927,000 | 1,176,300 | 1,118,600 | 1,077,700 | 3,689,100 | 3,602,300 | 3,487,300 | 3,405,400 | 3,367,200 | 3,627,100 | 3,261,600 | 3,311,000 |
| 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 |
| Financial leverage ratio | 1.67 | 1.70 | 1.65 | 1.66 | 1.75 | 1.76 | 1.76 | 1.77 | 1.81 | 5.13 | 5.77 | 8.53 | 2.25 | 2.27 | 2.34 | 2.44 | 2.49 | 2.77 | 2.39 | 2.51 |
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 shows a fluctuating trend over the years. From September 2019 to September 2021, the ratio remained relatively stable between 2.25 and 2.77, indicating that the company was using a moderate level of debt to finance its operations.
However, there was a significant spike in the financial leverage ratio by the end of December 2021, reaching 8.53. This sudden increase suggests a substantial increase in the company's debt relative to its equity, which could potentially indicate a risky financial position.
Subsequently, there was a gradual decline in the financial leverage ratio from March 2022 to December 2024, with the ratio stabilizing around 1.65 to 1.77. This downward trend signifies that the company may have reduced its reliance on debt financing and improved its financial stability.
Overall, it is important for Zurn Elkay Water Solutions Corporation to carefully manage its financial leverage ratio to balance the benefits of debt financing with the potential risks associated with high levels of leverage.
Peer comparison
Dec 31, 2024