Watts Water Technologies Inc (WTS)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 386,900 | 350,100 | 310,800 | 242,000 | 218,900 |
| Short-term investments | US$ in thousands | — | 3,400 | 3,500 | — | — |
| Total current liabilities | US$ in thousands | 417,900 | 405,800 | 378,700 | 408,500 | 312,800 |
| Cash ratio | 0.93 | 0.87 | 0.83 | 0.59 | 0.70 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($386,900K
+ $—K)
÷ $417,900K
= 0.93
The cash ratio of Watts Water Technologies Inc has shown fluctuations over the years. As of December 31, 2020, the cash ratio was 0.70, indicating that the company had $0.70 in cash and cash equivalents for every $1 of current liabilities. This ratio decreased to 0.59 by December 31, 2021, which suggests a decrease in the company's liquidity position.
However, the cash ratio improved in the following years, reaching 0.83 by December 31, 2022, 0.87 by December 31, 2023, and further increasing to 0.93 by December 31, 2024. These increases indicate that Watts Water Technologies Inc enhanced its ability to cover its short-term obligations with cash and cash equivalents.
Overall, the upward trend in the cash ratio from 2021 to 2024 suggests an improvement in the company's liquidity position and an enhanced ability to meet its short-term financial obligations using its available cash reserves.
Peer comparison
Dec 31, 2024