Zurn Elkay Water Solutions Corporation (ZWS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 244,600 | 193,800 | 115,400 | 158,300 | 241,100 |
| Interest expense | US$ in thousands | 33,100 | 38,500 | 26,900 | 34,700 | 56,600 |
| Interest coverage | 7.39 | 5.03 | 4.29 | 4.56 | 4.26 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $244,600K ÷ $33,100K
= 7.39
The interest coverage ratio for Zurn Elkay Water Solutions Corporation has shown a generally positive trend over the past few years. As of March 31, 2020, the company had an interest coverage ratio of 4.26, indicating that it was generating sufficient operating income to cover its interest expenses 4.26 times over.
By December 31, 2021, the interest coverage ratio had improved to 4.56, suggesting a slightly better ability to meet interest obligations. However, by the end of December 31, 2022, the ratio dipped slightly to 4.29, although it remained relatively stable.
The trend took a positive turn in the subsequent years, with the interest coverage ratio increasing to 5.03 by the end of December 31, 2023, and further to 7.39 by December 31, 2024. These higher ratios indicate that Zurn Elkay Water Solutions Corporation has been generating significantly more operating income relative to its interest expenses, reflecting a healthier financial position and enhanced ability to service its debt obligations.
Peer comparison
Dec 31, 2024