Watts Water Technologies Inc (WTS)
Payables 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 |
| Payables | US$ in thousands | 131,800 | 121,200 | 152,800 | 151,300 | 134,300 | 131,600 | 166,300 | 156,800 | 143,400 | 151,600 | 155,600 | 141,500 | 110,100 | 99,900 | 103,400 | 117,800 | 123,300 | 103,400 | 115,400 | 111,500 |
| Payables turnover | 13.06 | 13.92 | 10.98 | 11.08 | 12.51 | 12.58 | 9.85 | 10.34 | 11.05 | 10.04 | 9.44 | 9.62 | 12.19 | 13.47 | 13.12 | 11.99 | 11.52 | 13.77 | 12.44 | 12.83 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,721,400K ÷ $131,800K
= 13.06
The payables turnover ratio measures how quickly a company is paying off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which can be a sign of efficient working capital management.
Based on the data provided for Watts Water Technologies, Inc., the payables turnover ratios have fluctuated over the past eight quarters. In Q3 2023, the payables turnover ratio was 8.97, which was the highest value among all the quarters. This indicates that the company paid off its suppliers almost 9 times during that quarter.
On average, the payables turnover ratio for Watts Water Technologies, Inc. over the past eight quarters is approximately 7.76. This suggests that, on average, the company is paying its suppliers about 7.76 times per year.
The fluctuations in the payables turnover ratio could be influenced by various factors such as changes in payment terms with suppliers, changes in sales volume, or changes in the company's cash flow position.
Overall, a high and consistent payables turnover ratio is generally favorable as it indicates effective management of payables which can help improve cash flow and liquidity. However, it is essential to consider other financial metrics and factors when evaluating the overall financial health and performance of Watts Water Technologies, Inc.
Peer comparison
Dec 31, 2023