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ZWS (Zurn Elkay Water Solutions) Financial Strength : 7 (As of Mar. 2025)


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What is Zurn Elkay Water Solutions Financial Strength?

Zurn Elkay Water Solutions has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Zurn Elkay Water Solutions's Interest Coverage for the quarter that ended in Mar. 2025 was 8.92. Zurn Elkay Water Solutions's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.36. As of today, Zurn Elkay Water Solutions's Altman Z-Score is 4.06.


Competitive Comparison of Zurn Elkay Water Solutions's Financial Strength

For the Pollution & Treatment Controls subindustry, Zurn Elkay Water Solutions's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Zurn Elkay Water Solutions's Financial Strength Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Zurn Elkay Water Solutions's Financial Strength distribution charts can be found below:

* The bar in red indicates where Zurn Elkay Water Solutions's Financial Strength falls into.


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Zurn Elkay Water Solutions Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Zurn Elkay Water Solutions's Interest Expense for the months ended in Mar. 2025 was $-7 Mil. Its Operating Income for the months ended in Mar. 2025 was $65 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $543 Mil.

Zurn Elkay Water Solutions's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*65.1/-7.3
=8.92

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Zurn Elkay Water Solutions's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(14.2 + 542.7) / 1555.2
=0.36

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Zurn Elkay Water Solutions has a Z-score of 4.06, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.06 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Zurn Elkay Water Solutions  (NYSE:ZWS) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Zurn Elkay Water Solutions has the Financial Strength Rank of 7.


Zurn Elkay Water Solutions Financial Strength Related Terms

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Zurn Elkay Water Solutions Business Description

Traded in Other Exchanges
N/A
Address
511 West Freshwater Way, Milwaukee, WI, USA, 53204
Zurn Elkay Water Solutions Corp designs procures, manufactures, and markets a range of clean water solutions for drinking water, hygiene, and sustainable water management. The company's product portfolio includes professional-grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces.
Executives
Mark W Peterson officer: SVP & Chief Financial Officer 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Sudhanshu Chhabra officer: VP-Zurn Business Systems C/O REXNORD CORPORATION, 247 FRESHWATER WAY, SUITE 300, MILWAUKEE WI 53204
Ice Mountain Llc 10 percent owner C/O THE NORTHERN TRUST COMPANY, 50 S. LASALLE ST., B-3, CHICAGO IL 60603
Todd A. Adams director, officer: Chairman, President & CEO 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Michael Troutman officer: Chief Information Officer 247 FRESHWATER WAY, SUITE 300, MILWAUKEE WI 53204
Jeffrey J. Lavalle officer: VP, General Counsel & Sec'y 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Timothy J Jahnke director 115 ANSLEY WAY, ROSWELL GA 30075
Mark S. Bartlett director 4701 WEST GREENFIELD AVENUE, MILWAUKEE WI 53214
Thomas Christopoul director RESOURCES CONNECTION INC, 17101 ARMSTRONG AVENUE, IRVINE CA 92614
Jeffrey A Schoon officer: Executive Vice President 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Craig Wehr officer: Group Ex., President-Zurn C/O REXNORD CORPORATION, P.O. BOX 2022, MILWAUKEE WI 53201
Emma M Mctague director 1917 FOUR WHEEL DRIVE, OSHKOSH WI 54902
Kate Silha officer: Chief Human Resources Officer 511 W. FRESHWATER WAY, MILWAUKEE WI 53204
Rodney Jackson officer: SVP-Bus.&Corp. Development C/O REXNORD CORPORATION, P.O. BOX 2022, MILWAUKEE WI 53201
Hamilton William Edward Iv officer: Pres. Elkay Mfg. Company 511 W. FRESHWATER WAY, MILWAUKEE WI 53204