Watts Water Technologies Inc (WTS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,190,200 | 1,095,400 | 1,105,200 | 1,042,100 | 883,200 |
| Inventory | US$ in thousands | 392,100 | 399,300 | 375,600 | 370,700 | 263,600 |
| Inventory turnover | 3.04 | 2.74 | 2.94 | 2.81 | 3.35 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,190,200K ÷ $392,100K
= 3.04
The inventory turnover ratio for Watts Water Technologies Inc has shown some fluctuation over the past five years. In December 2020, the inventory turnover stood at 3.35, indicating that the company converted its inventory into sales 3.35 times during that period. However, there was a slight decline in this ratio to 2.81 in December 2021, suggesting that the company took longer to sell its inventory compared to the previous year.
In the following years, the inventory turnover ratio improved slightly to 2.94 in December 2022 but decreased to 2.74 in December 2023. This decline may indicate potential issues such as overstocking or slowing sales.
However, there was a positive trend observed in December 2024, with the inventory turnover ratio increasing to 3.04. This signifies that the company was able to improve its inventory management and sell its products more efficiently during that period.
Overall, the variations in the inventory turnover ratio of Watts Water Technologies Inc over the analyzed period suggest fluctuations in inventory management efficiency and sales performance. Monitoring this ratio can help assess the company's ability to manage its inventory levels effectively and optimize its operations.
Peer comparison
Dec 31, 2024