Zurn Elkay Water Solutions Corporation (ZWS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 202,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 33,300 | 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 |
| Interest coverage | 6.07 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $202,000K ÷ $33,300K
= 6.07
The interest coverage ratio for Zurn Elkay Water Solutions Corporation has displayed fluctuations over the periods indicated in the data provided. The interest coverage ratio represents the ability of the company to meet its interest obligations based on its earnings before interest and taxes (EBIT).
From September 2019 to September 2021, the interest coverage ratio generally showed an increasing trend, indicating that the company's earnings were sufficient to cover its interest expenses. This improvement suggests a strengthening financial position and reduced risk of financial distress.
However, from December 2021 to September 2022, there was a noticeable decline in the interest coverage ratio, dropping to its lowest point at 0.57 in September 2022. This significant decrease might indicate a potential strain on the company's ability to meet its interest payments. A low interest coverage ratio can signal financial distress, increasing the risk of default on debt obligations.
Subsequently, there was some recovery in the interest coverage ratio from December 2022 to December 2024, reaching levels above 6.00. This improvement suggests a better ability to cover interest expenses with operating income.
Overall, the fluctuating nature of the interest coverage ratio for Zurn Elkay Water Solutions Corporation indicates varying levels of financial health and risk exposure over the analyzed periods. It is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to handle its debt obligations.
Peer comparison
Dec 31, 2024