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 | ||
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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