Watts Water Technologies Inc (WTS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.04 | 2.84 | 2.76 | 2.70 | 2.74 | 2.81 | 2.58 | 2.73 | 2.94 | 2.59 | 2.52 | 2.65 | 2.81 | 2.84 | 3.08 | 3.24 | 3.35 | 3.22 | 3.10 | 3.28 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.38 | 3.49 | 3.49 | 3.58 | 3.14 | 3.04 | 3.23 | 3.22 | 3.46 | 3.50 | 3.51 | 3.61 | 3.99 | 3.91 | 3.72 | 3.58 | 3.80 | 3.72 | 3.90 | 3.87 |
Watts Water Technologies Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.
1. Inventory Turnover:
The inventory turnover ratio has shown a decreasing trend over the years, decreasing from 3.28 in March 2020 to 3.04 in December 2024. This indicates that the company is selling its inventory at a slightly slower rate, which may suggest either excess inventory levels or potential issues with sales or production.
2. Receivables Turnover:
The receivables turnover ratio data is not provided for the period under review. This may imply that the company does not have a significant focus on the collection efficiency of its accounts receivables or that the company's business model does not heavily rely on credit sales.
3. Payables Turnover:
Similarly, data for the payables turnover ratio is not available, making it challenging to assess how quickly the company pays its suppliers and manages its accounts payable.
4. Working Capital Turnover:
The working capital turnover ratio has fluctuated over the years but has generally shown a slight decrease, from 3.87 in March 2020 to 3.38 in December 2024. This indicates that the company's ability to generate revenue relative to its working capital has slightly declined, which may warrant further investigation into the efficiency of the company's working capital management.
In conclusion, while the inventory turnover ratio indicates some potential concerns about inventory management efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios. Further examination and comparison with industry benchmarks would be necessary to gain a clearer understanding of Watts Water Technologies Inc's operational efficiency.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.26 | 128.49 | 132.16 | 135.02 | 133.06 | 129.77 | 141.69 | 133.83 | 124.04 | 140.67 | 144.88 | 137.54 | 129.84 | 128.52 | 118.44 | 112.77 | 108.94 | 113.38 | 117.77 | 111.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Watts Water Technologies Inc, the Days of Inventory on Hand (DOH) has shown fluctuations over the years. For the most recent period, December 31, 2024, the company had 120.26 days of inventory on hand, indicating a decrease compared to the peak of 144.88 days on June 30, 2022. This suggests that the company has been managing its inventory more efficiently.
However, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available, which limits the ability to perform a complete analysis of the company's activity ratios related to accounts receivable and accounts payable management.
It is essential for the company to monitor these ratios consistently to ensure effective management of working capital and optimize cash flows. By improving inventory turnover, collecting receivables efficiently, and managing payables effectively, Watts Water Technologies Inc can enhance its overall financial performance and maintain a healthy liquidity position.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 10.36 | 10.16 | 10.15 | 10.06 | 10.32 | 9.89 | 9.46 | 9.01 | 8.51 | 8.06 | 7.48 | 7.11 | 7.12 | 7.33 | 7.90 |
| Total asset turnover | 0.94 | 0.94 | 0.93 | 0.92 | 0.89 | 1.00 | 0.99 | 1.00 | 1.03 | 1.03 | 0.99 | 0.98 | 0.97 | 0.93 | 0.90 | 0.86 | 0.87 | 0.88 | 0.92 | 0.90 |
The analysis of Watts Water Technologies Inc's long-term activity ratios reveals insightful trends.
1. Fixed Asset Turnover: This ratio measures how efficiently the company generates sales using its fixed assets. The trend shows a consistent improvement from 7.90 in March 2020 to a peak of 10.36 in September 2023. This indicates that Watts Water has been effectively utilizing its fixed assets to generate revenue over time. Although there was a slight decrease to 10.15 in March 2024, the company has generally maintained a strong performance in this aspect.
2. Total Asset Turnover: This ratio assesses how effectively the company utilizes its total assets to generate revenue. The trend fluctuates within a range, showing a slight increase from 0.90 in March 2020 to a peak of 1.03 in December 2022. This indicates that the company has been improving its efficiency in generating sales relative to its total asset base. However, there was a drop to 0.89 in December 2023, but then a recovery to 0.92 in March 2024.
Overall, the analysis of Watts Water Technologies Inc's long-term activity ratios suggests that the company has been efficiently utilizing its assets to drive sales growth, with some fluctuations over time. Continuing to monitor these ratios will provide valuable insights into the company's operational efficiency and potential areas for improvement.