How do you interpret water management — goodwill purchase accounting adjustments?

Frequent or large adjustments may indicate volatility in acquisition valuation or integration challenges.

How does water management — goodwill purchase accounting adjustments compare across companies?

Standard accounting adjustment disclosure for companies with active M&A strategies.

Zurn Elkay Water Solutions ZWS Water Management — Goodwill Purchase Accounting Adjustments

Discontinued — last reported Q4 '20

Similar metrics at other companies

WTRGWater — Reclassification Of Goodwill Acquisition Adjustment

-$8K+81.8%

AMWater Handling — Goodwill Purchase Accounting Adjustments

$85M—

PNRWater Unit — Goodwill Purchase Accounting Adjustments

$45.3M—

PNRWater Quality Systems — Goodwill Purchase Accounting Adjustments

$0—

PNRAquatic Systems — Goodwill Purchase Accounting Adjustments

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PNRWater Quality Systems — Goodwill Changes

$3.5M+185%

Other financials

Income statement

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Revenue$433.0M+11.4%

Gross profit$205.8M+13.7%

Operating income$82.1M+29.5%

Net income$58.9M+35.1%

EPS (diluted)$0.35+34.6%

Balance sheet

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Cash & equivalents$273.5M+89.0%

Total debt$552.2M-0.8%

Total equity$1.6B+3.8%

Total assets$2.7B+2.9%

Cash flow

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Operating cash flow$46.1M+7.5%

CapEx$2.3M-69.7%

Free cash flow$22.3M-76.1%

Valuation

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Market cap$8.34B+35.0%

Enterprise value$8.62B+30.3%

P/E39.1×+2.6×

P/S4.8×+0.9×

Profitability

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Gross margin45.4%0.0pp

Operating margin17.1%+1.0pp

Net margin12.3%+1.5pp

FCF margin6.8%—

Returns & leverage

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Return on equity13.5%+2.8pp

Debt / equity0.3×0.0×

Current ratio3.2×+0.4×

Where this comes from

Reported directly by Zurn Elkay Water Solutions in its filing.

Tagged under the XBRL concept us-gaap:GoodwillPurchaseAccountingAdjustments.

The official record: Zurn Elkay Water Solutions’s 10-K, filed May 12, 2020, on SEC EDGAR. View the filing →

Questions, answered.

What does water management — goodwill purchase accounting adjustments mean?: Accounting adjustments made to the value of goodwill for the Water Management segment after an acquisition.
How do you interpret water management — goodwill purchase accounting adjustments?: Frequent or large adjustments may indicate volatility in acquisition valuation or integration challenges.
How does water management — goodwill purchase accounting adjustments compare across companies?: Standard accounting adjustment disclosure for companies with active M&A strategies.