Watts Water Technologies Inc (WTS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.67 | 83.59 | 91.80 | 87.38 | 81.57 | 93.21 | 96.20 | 90.48 | 85.38 | 84.55 | 77.93 | 74.82 | 71.68 | 74.08 | 76.40 | 72.25 | 69.43 | 71.59 | 72.00 | 75.01 |
| Days of sales outstanding (DSO) | days | 46.29 | 46.91 | 49.85 | 49.71 | 43.26 | 48.22 | 50.96 | 51.53 | 44.72 | 51.20 | 56.43 | 56.93 | 48.15 | 51.01 | 50.71 | 54.54 | 50.47 | 55.22 | 47.25 | 44.84 |
| Number of days of payables | days | 27.95 | 26.22 | 33.25 | 32.95 | 29.17 | 29.03 | 37.06 | 35.28 | 33.03 | 36.34 | 38.68 | 37.95 | 29.94 | 27.10 | 27.82 | 30.44 | 31.70 | 26.51 | 29.33 | 28.46 |
| Cash conversion cycle | days | 103.01 | 104.28 | 108.40 | 104.14 | 95.67 | 112.40 | 110.10 | 106.73 | 97.07 | 99.41 | 95.68 | 93.80 | 89.89 | 97.99 | 99.28 | 96.34 | 88.20 | 100.30 | 89.92 | 91.39 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 84.67 + 46.29 – 27.95
= 103.01
The cash conversion cycle of Watts Water Technologies, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, it was 135.25 days, slightly lower than Q3 2023 at 135.83 days. However, both quarters were higher than the cycle in Q1 2023, which was 132.90 days. Q4 2022 had the lowest cycle at 122.80 days over the period analyzed.
Overall, the trend indicates that the company's cash conversion cycle has been relatively stable, with some minor variations. It suggests that Watts Water Technologies, Inc. is managing its working capital efficiently, although there may be room for improvement given the fluctuations experienced. Further analysis and comparison with industry benchmarks can provide additional insights into the company's cash management performance.
Peer comparison
Dec 31, 2023