Watts Water Technologies Inc (WTS)

Cash ratio

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
Cash and cash equivalents US$ in thousands 350,100 362,700 291,900 311,800 310,800 219,500 230,000 226,800 242,000 238,700 240,100 225,400 218,900 188,300 148,700 245,400 219,700 173,700 166,800 170,200
Short-term investments US$ in thousands 4,100 3,900 3,100 3,500 3,000 1,900
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
Cash ratio 0.86 0.96 0.73 0.79 0.83 0.59 0.55 0.56 0.59 0.57 0.61 0.65 0.70 0.64 0.53 0.65 0.52 0.44 0.43 0.53

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 fluctuated over the past eight quarters, ranging from 0.63 to 1.05. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position and suggests that the company is better positioned to meet its short-term obligations without relying on external financing.

In the most recent quarter, Q4 2023, the cash ratio was 0.99, which indicates that the company had $0.99 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy liquidity position, although slightly lower compared to the previous quarter. The trend of the cash ratio over multiple quarters can provide insight into the company's liquidity management and overall financial health.

Overall, the cash ratio of Watts Water Technologies, Inc. shows a relatively stable liquidity position with fluctuations within a reasonable range, indicating that the company has maintained a sufficient level of cash to cover its short-term obligations.


Peer comparison

Dec 31, 2023