Watts Water Technologies Inc (WTS)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,252,200 | 2,259,300 | 2,220,000 | 2,155,500 | 2,056,300 | 2,010,700 | 1,994,200 | 1,988,000 | 1,979,500 | 1,951,500 | 1,918,700 | 1,859,100 | 1,809,200 | 1,738,700 | 1,667,600 | 1,539,300 | 1,508,600 | 1,505,500 | 1,516,300 | 1,594,400 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 194,000 | 196,300 | 195,900 | 196,800 | 189,100 | 194,000 | 196,600 | 200,700 | 204,200 | 207,000 | 205,800 | 212,300 | 211,300 | 206,900 | 201,800 |
| Fixed asset turnover | — | — | — | — | — | 10.36 | 10.16 | 10.15 | 10.06 | 10.32 | 9.89 | 9.46 | 9.01 | 8.51 | 8.06 | 7.48 | 7.11 | 7.12 | 7.33 | 7.90 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,252,200K ÷ $—K
= —
The fixed asset turnover ratio for Watts Water Technologies Inc has been showing a consistently increasing trend over the past few years. Starting at 7.90 in March 2020, the ratio gradually improved to 10.36 by September 2023. This indicates that the company is generating more revenue from its fixed assets over time.
The increasing trend in fixed asset turnover suggests that Watts Water Technologies Inc is effectively utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio typically indicates that the company is operating efficiently and effectively using its fixed assets to generate revenue.
The slight decrease in the fixed asset turnover ratio from September 2023 (10.36) to December 2023 (―) may indicate a temporary slowdown in revenue generation from fixed assets or an increase in the carrying value of fixed assets. However, the ratio remains quite high, reflecting the company's ability to efficiently utilize its fixed assets.
It is important for investors and stakeholders to monitor the fixed asset turnover ratio over time to ensure that the company continues to effectively manage and utilize its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024