Watts Water Technologies Inc (WTS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 386,900 | 350,100 | 310,800 | 242,000 | 218,900 |
| Short-term investments | US$ in thousands | — | 3,400 | 3,500 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 417,900 | 405,800 | 378,700 | 408,500 | 312,800 |
| Quick ratio | 0.93 | 0.87 | 0.83 | 0.59 | 0.70 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($386,900K
+ $—K
+ $—K)
÷ $417,900K
= 0.93
The quick ratio of Watts Water Technologies Inc, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.70, indicating that the company had $0.70 of liquid assets available to cover each dollar of its current liabilities.
However, by December 31, 2021, the quick ratio had decreased to 0.59, suggesting a potential liquidity strain as the ratio dropped below 1. This may indicate that the company may have had difficulty meeting its short-term obligations with its readily available assets.
Subsequently, the quick ratio improved in the following years, reaching 0.83 by December 31, 2022, 0.87 by December 31, 2023, and further climbing to 0.93 by December 31, 2024. These increases indicate a strengthening liquidity position for the company, with more liquid assets available to cover its current liabilities.
Overall, while the quick ratio of Watts Water Technologies Inc has shown fluctuations over the years, the recent upward trend suggests an improving ability to meet short-term obligations with liquid assets, which can be considered a positive indicator of the company's financial health and liquidity management.
Peer comparison
Dec 31, 2024