Watts Water Technologies Inc (WTS)
Working capital 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 |
| Total current assets | US$ in thousands | 1,061,000 | 1,041,600 | 1,023,100 | 1,013,800 | 950,600 | 936,800 | 967,700 | 919,900 | 861,500 | 863,000 | 843,900 | 774,600 | 709,500 | 699,600 | 667,500 | 791,200 | 734,900 | 714,100 | 728,400 | 729,900 |
| Total current liabilities | US$ in thousands | 405,800 | 380,300 | 404,800 | 396,200 | 378,700 | 378,500 | 421,100 | 404,800 | 408,500 | 417,800 | 395,800 | 345,200 | 312,800 | 295,200 | 278,900 | 379,300 | 419,300 | 396,500 | 391,600 | 321,800 |
| Working capital turnover | 3.13 | 3.03 | 3.21 | 3.21 | 3.45 | 3.48 | 3.50 | 3.60 | 3.98 | 3.89 | 3.71 | 3.56 | 3.78 | 3.70 | 3.87 | 3.85 | 5.04 | 4.97 | 5.83 | 4.80 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,048,400K ÷ ($1,061,000K – $405,800K)
= 3.13
Watts Water Technologies, Inc.'s working capital turnover ratio has shown a general decreasing trend over the quarters, from 3.46 in Q4 2022 to 3.14 in Q4 2023. This indicates that the company is becoming less efficient in managing its working capital to generate revenue. A lower working capital turnover ratio may suggest that the company is holding onto excess inventory or receivables, which could tie up cash and potentially impact profitability.
However, it's important to note that the working capital turnover ratios for all quarters are above 3, indicating that the company is still able to efficiently use its working capital to generate sales. Comparing to industry benchmarks and historical data of the company could provide further insights into the company's performance and efficiency in managing its working capital.
Peer comparison
Dec 31, 2023