Watts Water Technologies Inc (WTS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,048,400 | 1,972,700 | 1,803,100 | 1,494,900 | 1,586,400 |
| Property, plant and equipment | US$ in thousands | 248,200 | 196,800 | 200,700 | 212,300 | 200,000 |
| Fixed asset turnover | 8.25 | 10.02 | 8.98 | 7.04 | 7.93 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,048,400K ÷ $248,200K
= 8.25
Fixed asset turnover is a financial ratio that measures how efficiently a company generates sales revenue from its investment in fixed assets. In the case of Watts Water Technologies, Inc., the fixed asset turnover ratio has fluctuated over the past five years.
In 2023, the fixed asset turnover ratio was 8.28, signaling that for every dollar invested in fixed assets, the company generated approximately $8.28 in sales revenue. This represents a decrease from the previous year when the ratio was 10.06. The decrease may suggest that the company was less efficient in utilizing its fixed assets to generate sales in 2023 compared to 2022.
Looking further back, in 2021, the fixed asset turnover ratio was 9.01, indicating a higher efficiency in utilizing fixed assets compared to 2023 but slightly lower than the peak in 2022. In 2020 and 2019, the ratios were 7.11 and 8.00 respectively, showing variations in efficiency over the years.
Overall, the trend in fixed asset turnover for Watts Water Technologies, Inc. suggests some fluctuations in the company's ability to efficiently utilize its fixed assets to generate sales revenue. Further analysis and comparison with industry benchmarks would be helpful in understanding the company's performance in this aspect.
Peer comparison
Dec 31, 2023