Watts Water Technologies Inc (WTS)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 120.26 + — – —
= 120.26
The cash conversion cycle is a key metric that measures the time it takes for a company to convert its resources into cash inflows. Watts Water Technologies Inc's cash conversion cycle has shown some fluctuations over the analyzed period.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from 108.94 days to 144.88 days. It initially increased from 111.13 days on March 2020 to 144.88 days by June 2022, indicating inefficiencies in the company's working capital management.
There was a notable improvement in the cash conversion cycle in the last quarter of 2022, with a decrease to 124.04 days. However, the cycle increased again in the subsequent periods, reaching a peak of 141.69 days on June 30, 2023, before declining to 120.26 days by December 31, 2024.
Overall, the cash conversion cycle for Watts Water Technologies Inc has shown some volatility during the analyzed period, reflecting changes in the company's ability to efficiently manage its operating cycle, accounts receivable, and accounts payable. Further analysis and management attention may be necessary to stabilize and optimize the cash conversion cycle in the future.
Peer comparison
Dec 31, 2024