The business behind the dividend
| Measure | ZWS | Median | Formula |
|---|---|---|---|
| Return on equity | 12.3% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 13.3% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | — | — | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | — | — | Operating cash flow − capital expenditure |
| Operating margin | 16.4% | 14.3% | Operating income ÷ revenue |
| Net margin | 11.7% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.31x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 9.75x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 3.13x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 0.90x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.75x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -5.5% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Not computed here: Free cash flow, Owner earnings — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 12.3% | 10.1% | 7.0% | 3.8% | 95.6% | 10.2% | 13.7% | 2.8% | 6.3% | 6.9% | 7.0% |
| Return on capital employed | 13.3% | 11.7% | 9.1% | 5.0% | 16.1% | 4.2% | 3.7% | 12.4% | 10.4% | 7.5% | 9.1% |
| Operating margin | 16.4% | 15.6% | 12.5% | 8.4% | 11.7% | 14.4% | 14.7% | 14.9% | 14.4% | 11.9% | 14.4% |
| Net margin | 11.7% | 10.2% | 7.4% | 4.8% | 13.3% | 19.7% | 25.4% | 1.7% | 4.1% | 4.3% | 7.4% |
| Debt to equity | 0.31x | 0.31x | 0.31x | 0.33x | 4.27x | 0.78x | 1.12x | 1.01x | 1.12x | 1.52x | 0.78x |
| Current ratio | 3.13x | 2.91x | 3.02x | 2.62x | 1.98x | 2.86x | 2.78x | 2.48x | 2.20x | 2.94x | 2.78x |
| Cash conversion | 1.75x | 1.83x | 2.25x | 1.57x | 1.85x | 2.18x | 1.66x | 7.52x | 3.01x | 2.63x | 1.85x |
How it compares in industrials
Among the 16 industrials companies here measured on operating cash flow, Zurn Elkay Water Solutions pays out less than 9 of them. The median for that group is 28.0%, against this company’s 18.4%.
Closest on operating cash flow
- Euroseas (ESEA) 13.4%
- GATX (GATX) 13.9%
- Costamare (CMRE) 14.8%
- Marten Transport (MRTN) 20.9%
Same sector and same denominator, so the figures are comparable. All 348 in industrials →