Watts Water Technologies Inc (WTS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,061,000 | 1,041,600 | 1,023,100 | 1,013,800 | 950,600 | 936,800 | 967,700 | 919,900 | 861,500 | 863,000 | 843,900 | 774,600 | 709,500 | 699,600 | 667,500 | 791,200 | 734,900 | 714,100 | 728,400 | 729,900 |
| 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 |
| Current ratio | 2.61 | 2.74 | 2.53 | 2.56 | 2.51 | 2.48 | 2.30 | 2.27 | 2.11 | 2.07 | 2.13 | 2.24 | 2.27 | 2.37 | 2.39 | 2.09 | 1.75 | 1.80 | 1.86 | 2.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,061,000K ÷ $405,800K
= 2.61
The current ratio of Watts Water Technologies, Inc. has shown a fluctuating trend over the past eight quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, has been relatively stable overall, ranging from 2.27 to 2.74.
During the most recent quarter (Q4 2023), the current ratio stood at 2.61, slightly lower than the preceding quarter but still above 2.5, suggesting that the company has a strong liquidity position and can meet its current liabilities comfortably with its current assets. The decrease from the previous quarter could indicate a reduction in current assets or an increase in current liabilities, which may warrant further investigation into the company's financial management.
Over the past two years, the company has maintained a current ratio above 2.0 in all quarters, indicating sound financial health and efficient working capital management. However, it is worth noting that the current ratio has shown some variability, reaching a peak of 2.74 in Q3 2023 and a low of 2.27 in Q1 2022.
Overall, the current ratio analysis suggests that Watts Water Technologies, Inc. generally has a healthy liquidity position to meet its short-term obligations, although some fluctuations in the ratio over time may need closer monitoring to ensure continued financial stability.
Peer comparison
Dec 31, 2023