Watts Water Technologies Inc (WTS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,061,000 | 950,600 | 861,500 | 709,500 | 734,900 |
| Total current liabilities | US$ in thousands | 405,800 | 378,700 | 408,500 | 312,800 | 419,300 |
| Current ratio | 2.61 | 2.51 | 2.11 | 2.27 | 1.75 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,061,000K ÷ $405,800K
= 2.61
The current ratio for Watts Water Technologies, Inc. has shown a positive trend over the past five years, indicating an improving liquidity position. The ratio has consistently been above 1, suggesting that the company has more than enough current assets to cover its short-term liabilities.
The current ratio increased from 1.75 in 2019 to 2.61 in 2023, demonstrating a significant enhancement in the company's ability to meet its short-term obligations. This improvement suggests that Watts Water Technologies has been efficiently managing its current assets and liabilities over the years.
In 2021, there was a notable increase in the current ratio to 2.11, possibly due to better management of working capital or an increase in current assets relative to current liabilities. However, the company's liquidity position strengthened further in 2022 and 2023, with current ratios of 2.51 and 2.61, respectively.
Overall, the consistent upward trend in the current ratio indicates that Watts Water Technologies, Inc. has maintained a strong liquidity position and has been effectively managing its current assets in relation to its current liabilities in recent years.
Peer comparison
Dec 31, 2023