Watts Water Technologies Inc (WTS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,048,400 | 2,004,500 | 1,987,300 | 1,981,100 | 1,972,700 | 1,945,300 | 1,913,000 | 1,853,600 | 1,803,100 | 1,733,800 | 1,660,500 | 1,529,700 | 1,498,000 | 1,494,900 | 1,505,800 | 1,584,200 | 1,589,700 | 1,577,000 | 1,963,700 | 1,958,500 |
| Receivables | US$ in thousands | 259,800 | 257,600 | 271,400 | 269,800 | 233,800 | 257,000 | 267,100 | 261,700 | 220,900 | 243,200 | 256,700 | 238,600 | 197,600 | 208,900 | 209,200 | 236,700 | 219,800 | 238,600 | 254,200 | 240,600 |
| Receivables turnover | 7.88 | 7.78 | 7.32 | 7.34 | 8.44 | 7.57 | 7.16 | 7.08 | 8.16 | 7.13 | 6.47 | 6.41 | 7.58 | 7.16 | 7.20 | 6.69 | 7.23 | 6.61 | 7.73 | 8.14 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,048,400K ÷ $259,800K
= 7.88
The receivables turnover ratio measures how efficiently Watts Water Technologies, Inc. is able to collect outstanding receivables during a specific time period. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Over the past eight quarters, Watts Water Technologies, Inc. has maintained a relatively stable receivables turnover ratio, averaging around 7.5 to 8.5. This indicates a consistent efficiency in collecting outstanding receivables from customers over time.
The slight fluctuations in the receivables turnover ratio from quarter to quarter suggest that the company is managing its accounts receivable effectively, with some variability in the speed of collection. The lower turnover in some quarters may be a result of seasonality or specific business conditions impacting customer payment patterns.
Overall, the consistent and relatively high receivables turnover ratio of Watts Water Technologies, Inc. indicates a healthy accounts receivable management process, contributing to the company's overall financial stability.
Peer comparison
Dec 31, 2023