Watts Water Technologies Inc (WTS)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 259,800 | 257,600 | 271,400 | 269,800 | 233,800 | 257,000 | 267,100 | 261,700 | 220,900 | 243,200 | 256,700 | 238,600 | 197,600 | 208,900 | 209,200 | 236,700 | 219,800 | 238,600 | 254,200 | 240,600 |
| 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 |
| Quick ratio | 1.50 | 1.64 | 1.40 | 1.48 | 1.45 | 1.27 | 1.18 | 1.21 | 1.13 | 1.15 | 1.26 | 1.34 | 1.33 | 1.35 | 1.28 | 1.27 | 1.05 | 1.04 | 1.08 | 1.28 |
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 some fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.
In the most recent quarter, Q4 2023, the quick ratio was 1.63, slightly lower than the previous quarter's ratio of 1.72. Despite the decrease, the ratio remains above 1, which indicates that the company still has an adequate level of liquid assets to cover its short-term liabilities.
Looking back at the trend over the past year, the quick ratio has generally been above 1, with some fluctuations. The ratio reached a high of 1.72 in Q3 2023 and a low of 1.27 in Q2 2022. Overall, the trend suggests that Watts Water Technologies, Inc. has maintained a healthy liquidity position over the past eight quarters.
It is important for investors and stakeholders to closely monitor changes in the quick ratio, as a sustained downward trend could indicate potential liquidity issues for the company.
Peer comparison
Dec 31, 2023