Zurn Elkay Water Solutions Corporation (ZWS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 3,301,000 |
| 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 |
| Financial leverage ratio | 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 | 2.59 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,704,800K ÷ $1,586,500K
= 1.70
The financial leverage ratio of Zurn Elkay Water Solutions Corporation has shown fluctuations over the past several quarters. The ratio measures the company's use of debt to finance its operations and indicates the level of financial risk.
From September 2024 to March 2023, the financial leverage ratio remained relatively stable, fluctuating between 1.65 and 1.76. However, in June 2022, there was a significant increase in the ratio to 5.77, indicating a substantial increase in debt relative to equity. This continued to rise in subsequent quarters, reaching a peak of 8.53 in December 2021.
Following the peak, the financial leverage ratio decreased gradually and began to stabilize around 2.25 in September 2022. The ratio continued to fluctuate around this level over the next few quarters, indicating a more moderate level of financial leverage compared to the previous spikes.
Overall, the trend in the financial leverage ratio suggests that Zurn Elkay Water Solutions Corporation experienced periods of high leverage, potentially indicating increased financial risk and reliance on debt financing. The recent stabilization around the 2.25 level may indicate a more conservative approach to capital structure and debt management.
Peer comparison
Sep 30, 2024