Zurn Elkay Water Solutions Corporation (ZWS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.38 |
| Debt-to-capital ratio | 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 | 0.50 |
| Debt-to-equity ratio | 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 | 0.99 |
| 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 |
Over the past several quarters, Zurn Elkay Water Solutions Corporation's solvency ratios have shown some fluctuations.
The debt-to-assets ratio has ranged between 0.18 and 0.50 over the period under review, indicating that Zurn Elkay has been prudent in managing its debt levels relative to its total assets. It is positive to see that the ratio has generally been below 0.20 in recent quarters, suggesting a conservative approach to financing operations.
Similarly, the debt-to-capital ratio has fluctuated between 0.23 and 0.81 during the reviewed period. While the ratio has shown some variability, it seems to have stabilized around 0.25 to 0.50 in more recent quarters. This indicates that Zurn Elkay has used a mix of debt and equity to fund its operations, with a relatively moderate reliance on debt.
The debt-to-equity ratio has also exhibited variability, ranging from 0.31 to 4.22. It appears that Zurn Elkay's reliance on debt financing has been more pronounced in certain quarters, as reflected by the higher ratios observed. However, the company has managed to bring down the ratio in recent periods, suggesting efforts to strengthen the equity base relative to debt.
Lastly, the financial leverage ratio has shown fluctuations between 1.65 and 8.53, highlighting Zurn Elkay's changing financial leverage position. The company has experienced peaks and troughs in leverage, indicating fluctuations in its overall capital structure and risk profile. It is worth noting that the ratio has been somewhat more stable in recent quarters, which may signify improved stability in the company's financial structure.
Overall, Zurn Elkay Water Solutions Corporation's solvency ratios suggest that the company has been managing its debt levels prudently, with some fluctuations in leverage over time. Continued monitoring of these ratios will be essential to assess the company's long-term financial health and resilience.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a financial ratio that indicates a company's ability to pay its interest expenses on outstanding debt. Zurn Elkay Water Solutions Corporation's interest coverage has varied over the reporting periods provided. The interest coverage ratio has ranged from 0.57 to 7.46, with the highest coverage observed in the Dec 31, 2021, period. This indicates that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses by a considerable margin during that period.
However, there are fluctuations in the interest coverage ratio over time, with some periods showing lower coverage levels, such as in Sep 30, 2022, and Jun 30, 2022. A low interest coverage ratio suggests that the company may have difficulty meeting its interest obligations from its operating income.
Overall, it is important for investors and creditors to closely monitor Zurn Elkay Water Solutions Corporation's interest coverage ratio to assess the company's financial health and ability to meet its debt obligations in a timely manner. A consistent and improving interest coverage ratio is generally a positive indicator of a company's financial strength and stability.