Watts Water Technologies Inc (WTS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 350,100 | 310,800 | 242,000 | 218,900 | 219,700 |
| Short-term investments | US$ in thousands | — | 3,500 | — | — | — |
| Total current liabilities | US$ in thousands | 405,800 | 378,700 | 408,500 | 312,800 | 419,300 |
| Cash ratio | 0.86 | 0.83 | 0.59 | 0.70 | 0.52 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($350,100K
+ $—K)
÷ $405,800K
= 0.86
The cash ratio of Watts Water Technologies, Inc. has shown a fluctuating trend over the past five years. The ratio has increased from 0.58 in 2019 to 0.99 in 2023, indicating an improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2021, there was a noticeable increase in the cash ratio to 0.66, representing a stronger liquidity position compared to the previous year. However, the ratio dipped to 0.79 in 2020 before rebounding to its highest level in 2023.
Overall, the upward trend in the cash ratio suggests that Watts Water Technologies has been effectively managing its cash position and is in a better position to meet its short-term obligations using its available cash resources.
Peer comparison
Dec 31, 2023