Zurn Elkay Water Solutions Corporation (ZWS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.18 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.19 | 0.18 | 0.45 | 0.48 | 0.50 | 0.32 | 0.33 | 0.34 | 0.35 | 0.34 | 0.39 | 0.35 | 0.38 |
| Debt-to-capital ratio | 0.24 | 0.24 | 0.23 | 0.24 | 0.25 | 0.26 | 0.26 | 0.25 | 0.25 | 0.70 | 0.73 | 0.81 | 0.42 | 0.43 | 0.44 | 0.46 | 0.46 | 0.52 | 0.46 | 0.49 |
| Debt-to-equity ratio | 0.31 | 0.31 | 0.31 | 0.31 | 0.34 | 0.35 | 0.34 | 0.33 | 0.33 | 2.32 | 2.75 | 4.22 | 0.72 | 0.75 | 0.80 | 0.85 | 0.85 | 1.07 | 0.84 | 0.95 |
| 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 |
Based on the provided data, Zurn Elkay Water Solutions Corporation's solvency ratios show the following trends:
1. Debt-to-assets ratio: This ratio measures the proportion of the company's assets financed by debt. Zurn Elkay Water Solutions Corporation's debt-to-assets ratio has been fluctuating over the years, ranging from 0.18 to 0.50. A decreasing trend is observed from December 31, 2021, onwards, indicating a lower reliance on debt to finance its assets.
2. Debt-to-capital ratio: This ratio indicates the percentage of the company's capital that is financed by debt. Zurn Elkay Water Solutions Corporation's debt-to-capital ratio has shown variability, with a peak at 0.81 on December 31, 2021, and a subsequent decline. The company has managed to reduce its debt relative to its capital from 2022 onwards, which is a positive sign for its solvency.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the company's leverage and financial risk by comparing its debt to shareholders' equity. Zurn Elkay Water Solutions Corporation's ratio has fluctuated but has generally decreased from a high of 4.22 on December 31, 2021, to around 0.31 by December 31, 2024. This indicates a reduction in financial risk and a more balanced capital structure.
4. Financial leverage ratio: This ratio shows how much of the company's assets are financed by debt. Zurn Elkay Water Solutions Corporation's financial leverage ratio has exhibited a decreasing trend over the years, indicating a lower reliance on debt financing. The ratio declined from 8.53 on December 31, 2021, to around 1.67 by December 31, 2024, reflecting improved financial stability.
Overall, the solvency ratios of Zurn Elkay Water Solutions Corporation demonstrate a positive trend towards a healthier financial structure, with reducing leverage and debt levels relative to assets and equity. This indicates an improved ability to meet financial obligations and suggests a more sustainable financial position in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio is a financial metric used to assess a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Analyzing the interest coverage ratio of Zurn Elkay Water Solutions Corporation based on the provided data, we observe the following trends:
1. September 2019 - September 2021: The interest coverage ratio steadily increased from 4.65 to 7.46, indicating an improving ability to cover interest payments comfortably during this period.
2. December 2021: However, in December 2021, there was a notable decrease in the interest coverage ratio to 4.56, which might suggest a slight strain on the company's ability to cover interest expenses.
3. March 2022 - March 2024: The interest coverage ratio fluctuated within a range of 3.53 to 5.42 during this period, showing some volatility in the company's ability to cover interest costs.
4. September 2024: The interest coverage ratio increased to 6.06, indicating a temporary improvement in the company's ability to handle its interest payments.
5. December 2024: The interest coverage ratio remained relatively stable at 6.07, suggesting a continued ability to cover interest expenses adequately.
6. Overall, it is essential to monitor the interest coverage ratio of Zurn Elkay Water Solutions Corporation closely to ensure that the company can continue to meet its interest obligations comfortably and avoid potential financial distress.
In conclusion, the interest coverage ratio of Zurn Elkay Water Solutions Corporation has shown some fluctuations over the analyzed period, with both improvements and slight declines. It is crucial for investors and stakeholders to assess the sustainability of these trends and the company's overall financial health in managing its debt obligations.