Watts Water Technologies Inc (WTS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 350,100 | 310,800 | 242,000 | 218,900 | 219,700 |
| Short-term investments | US$ in thousands | — | 3,500 | — | — | — |
| Receivables | US$ in thousands | 259,800 | 233,800 | 220,900 | 197,600 | 219,800 |
| Total current liabilities | US$ in thousands | 405,800 | 378,700 | 408,500 | 312,800 | 419,300 |
| Quick ratio | 1.50 | 1.45 | 1.13 | 1.33 | 1.05 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($350,100K
+ $—K
+ $259,800K)
÷ $405,800K
= 1.50
The quick ratio of Watts Water Technologies, Inc. has shown a fluctuating trend over the past five years. The quick ratio indicates the company's ability to cover its short-term obligations with its most liquid assets. A quick ratio above 1.0 typically suggests the company is able to meet its short-term liabilities.
In 2023, the quick ratio of 1.63 indicates that the company has $1.63 of liquid assets available to cover each dollar of current liabilities, showing an improvement compared to the previous year. This suggests a strong ability to meet short-term obligations.
In 2022, the quick ratio was 1.52, which also indicates a healthy liquidity position, although slightly lower than in 2023. The quick ratio has been above 1.0 for the past five years, indicating that the company has maintained a good level of liquidity to meet its short-term obligations.
The quick ratio was at its lowest in 2021 at 1.20, showing a slight decline in the company's ability to cover short-term liabilities with liquid assets. However, the ratio improved in 2022 and further in 2023.
The highest quick ratio was observed in 2019 at 1.11, and since then, there has been a consistent improvement in this metric, reaching its peak in 2023. This positive trend in the quick ratio reflects a strengthening liquidity position for Watts Water Technologies, Inc. over the past five years.
Peer comparison
Dec 31, 2023