Watts Water Technologies Inc (WTS)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,048,400 | 1,972,700 | 1,803,100 | 1,494,900 | 1,586,400 |
| Total assets | US$ in thousands | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 | 1,723,100 |
| Total asset turnover | 0.89 | 1.02 | 0.97 | 0.86 | 0.92 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,048,400K ÷ $2,309,400K
= 0.89
Watts Water Technologies, Inc. has experienced fluctuations in its total asset turnover over the past five years. The total asset turnover ratio indicates how efficiently the company is utilizing its assets to generate revenue.
In 2023, the total asset turnover ratio decreased to 0.89 from 1.03 in 2022, suggesting a decline in the company's ability to generate sales from its assets. This could be due to increased asset base without a proportional increase in revenue during the year.
The year 2022 saw a higher total asset turnover of 1.03, indicating that the company generated $1.03 in sales for every $1 of assets held. This could signal effective asset management and utilization during that period.
Similarly, in 2021, the total asset turnover was 0.97, which was slightly lower than the previous year. It suggests a slight decrease in efficiency in utilizing assets to generate revenue compared to 2020.
In 2020 and 2019, the total asset turnover ratios were 0.87 and 0.93, respectively. These figures indicate that the company struggled to effectively utilize its assets to generate sales during those years.
Overall, the fluctuating trend in total asset turnover for Watts Water Technologies, Inc. indicates varying degrees of efficiency in generating revenue from its asset base over the past five years.
Peer comparison
Dec 31, 2023