Watts Water Technologies Inc (WTS)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,048,400 | 2,004,500 | 1,987,300 | 1,981,100 | 1,972,700 | 1,945,300 | 1,913,000 | 1,853,600 | 1,803,100 | 1,733,800 | 1,660,500 | 1,529,700 | 1,498,000 | 1,494,900 | 1,505,800 | 1,584,200 | 1,589,700 | 1,577,000 | 1,963,700 | 1,958,500 |
| Property, plant and equipment | US$ in thousands | 248,200 | 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 | 200,000 | 195,800 | 200,900 | 199,600 |
| Fixed asset turnover | 8.25 | 10.33 | 10.12 | 10.11 | 10.02 | 10.29 | 9.86 | 9.43 | 8.98 | 8.49 | 8.02 | 7.43 | 7.06 | 7.07 | 7.28 | 7.85 | 7.95 | 8.05 | 9.77 | 9.81 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,048,400K ÷ $248,200K
= 8.25
Watts Water Technologies, Inc. has shown varying fixed asset turnover ratios over the past eight quarters. Fixed asset turnover measures how effectively a company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is efficiently using its fixed assets to generate sales.
In Q4 2023, the company's fixed asset turnover was 8.28, showing a decrease compared to the previous quarter's 10.36. This decrease suggests that the company's fixed assets were less productive in generating sales during the quarter.
However, looking at the trend over the past quarters, the company has generally maintained a high fixed asset turnover ratio above 9, indicating efficient utilization of fixed assets to generate revenue. The company's best performance in terms of fixed asset turnover was seen in Q3 2023 at 10.36.
Overall, while there has been some fluctuation in the fixed asset turnover ratio, Watts Water Technologies, Inc. has demonstrated a consistent ability to efficiently utilize its fixed assets to generate revenue over the past eight quarters.
Peer comparison
Dec 31, 2023