Watts Water Technologies Inc (WTS)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,721,400 | 1,680,600 | 1,584,800 | 1,342,200 | 1,420,200 |
| Inventory | US$ in thousands | 399,300 | 375,600 | 370,700 | 263,600 | 270,100 |
| Inventory turnover | 4.31 | 4.47 | 4.28 | 5.09 | 5.26 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,721,400K ÷ $399,300K
= 4.31
The inventory turnover of Watts Water Technologies, Inc. has been fluctuating over the past five years, as indicated by the following ratios: 2.74 in 2023, 2.94 in 2022, 2.81 in 2021, 3.35 in 2020, and 3.42 in 2019. The company's inventory turnover ratio measures how efficiently the firm manages its inventory by indicating how many times it sells and replaces its inventory within a specific period.
A decreasing trend in inventory turnover may suggest challenges in managing inventory levels efficiently or potential issues with sales and demand forecasting. On the other hand, an increasing trend in inventory turnover indicates improved efficiency in inventory management and potentially better sales performance.
Overall, the inventory turnover ratios of Watts Water Technologies, Inc. indicate some variability in the efficiency of their inventory management over the years. Further analysis and comparison with industry benchmarks may provide more insights into the effectiveness of the company's inventory management practices.
Peer comparison
Dec 31, 2023