Zurn Elkay Water Solutions Corporation (ZWS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 216,500 | 204,400 | 193,800 | 190,400 | 117,100 | 111,900 | 115,400 | 13,200 | 102,400 | 139,000 | 158,300 | 306,500 | 293,000 | 251,800 | 263,800 | 282,200 | 292,800 | 320,100 | 295,100 | 202,000 |
| Interest expense (ttm) | US$ in thousands | 35,700 | 37,700 | 38,500 | 38,700 | 36,800 | 31,700 | 26,900 | 23,100 | 25,000 | 29,900 | 34,700 | 41,100 | 44,600 | 47,900 | 52,700 | 56,500 | 58,600 | 61,000 | 63,400 | 66,800 |
| Interest coverage | 6.06 | 5.42 | 5.03 | 4.92 | 3.18 | 3.53 | 4.29 | 0.57 | 4.10 | 4.65 | 4.56 | 7.46 | 6.57 | 5.26 | 5.01 | 4.99 | 5.00 | 5.25 | 4.65 | 3.02 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $216,500K ÷ $35,700K
= 6.06
The interest coverage ratio of Zurn Elkay Water Solutions Corporation has shown fluctuations over the past few quarters. The ratio was relatively high in the most recent quarter ending September 30, 2024, at 6.06, indicating that the company generated 6.06 times the earnings needed to cover its interest expenses, which is a positive sign of financial health.
However, the interest coverage ratio for the quarter ending March 31, 2024, and December 31, 2023, decreased slightly to 5.42 and 5.03, respectively. This suggests that the ability of the company to cover its interest payments declined compared to the previous quarter.
In contrast, the interest coverage ratio was relatively low in the quarter ending June 30, 2022, at 0.57, indicating a potential concern regarding the company's ability to meet its interest obligations from its earnings during that period.
Overall, the trend of the interest coverage ratio for Zurn Elkay Water Solutions Corporation has been inconsistent, with some quarters demonstrating strong coverage while others showing weaknesses. It is essential for the company to maintain a healthy interest coverage ratio to ensure it can meet its interest payments and avoid financial distress.
Peer comparison
Sep 30, 2024