Watts Water Technologies Inc (WTS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,721,400 | 1,687,300 | 1,677,500 | 1,675,800 | 1,680,600 | 1,654,900 | 1,638,000 | 1,622,000 | 1,584,700 | 1,522,600 | 1,468,300 | 1,361,100 | 1,342,200 | 1,345,600 | 1,356,400 | 1,412,600 | 1,419,900 | 1,423,400 | 1,436,100 | 1,430,200 |
| Inventory | US$ in thousands | 399,300 | 386,400 | 421,900 | 401,200 | 375,600 | 422,600 | 431,700 | 402,100 | 370,700 | 352,700 | 313,500 | 279,000 | 263,600 | 273,100 | 283,900 | 279,600 | 270,100 | 279,200 | 283,300 | 293,900 |
| Inventory turnover | 4.31 | 4.37 | 3.98 | 4.18 | 4.47 | 3.92 | 3.79 | 4.03 | 4.27 | 4.32 | 4.68 | 4.88 | 5.09 | 4.93 | 4.78 | 5.05 | 5.26 | 5.10 | 5.07 | 4.87 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,721,400K ÷ $399,300K
= 4.31
Watts Water Technologies, Inc. has shown varying inventory turnover ratios over the past eight quarters. The inventory turnover ratio measures how effectively the company is able to manage its inventory by calculating the number of times the company sells and replaces its inventory within a specific time period.
From Q4 2022 to Q2 2023, the inventory turnover ratio fluctuated between 2.52 to 2.94 times. Notably, the lowest turnover was recorded in Q2 2022 at 2.52, indicating that the company took longer to sell and replace its inventory during that quarter. On the other hand, the highest turnover was observed in Q4 2022 at 2.94, suggesting a more efficient management of inventory during that period.
Overall, the average inventory turnover ratio over the eight quarters is 2.70. This indicates that, on average, Watts Water Technologies, Inc. is able to sell and replace its inventory approximately 2.70 times within a year. However, it is important to consider industry benchmarks and trends over time to assess the company's inventory management performance effectively.
Peer comparison
Dec 31, 2023
Dec 31, 2023