Watts Water Technologies Inc (WTS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.91% | 44.32% | 42.54% | 41.84% | 42.71% |
| Operating profit margin | 17.13% | 15.97% | 13.29% | 12.11% | 12.42% |
| Pretax margin | 17.06% | 15.59% | 12.98% | 11.17% | 11.59% |
| Net profit margin | 12.80% | 12.75% | 9.19% | 7.65% | 8.29% |
Watts Water Technologies, Inc. has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has steadily increased from 42.33% in 2019 to 46.73% in 2023, indicating the company's ability to control direct costs associated with producing its goods.
The operating profit margin has also seen a positive trend, rising from 12.58% in 2019 to 17.33% in 2023. This indicates that the company has been effectively managing its operating expenses and generating more profit from its core business operations.
The pretax margin has shown significant improvement as well, increasing from 11.49% in 2019 to 17.00% in 2023. This suggests that the company has been able to enhance its profitability before accounting for taxes, demonstrating efficiency in its overall financial management.
Lastly, the net profit margin has also seen a positive trend, climbing from 8.22% in 2019 to 12.75% in 2023. This indicates that the company has been successful in controlling its non-operating expenses and generating more profit for its shareholders.
Overall, the profitability ratios of Watts Water Technologies, Inc. reflect a strong and improving financial performance, indicating effective cost management and operational efficiency over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.19% | 16.31% | 12.91% | 10.42% | 11.44% |
| Return on assets (ROA) | 11.35% | 13.03% | 8.93% | 6.58% | 7.63% |
| Return on total capital | 19.74% | 21.72% | 18.28% | 14.22% | 16.75% |
| Return on equity (ROE) | 17.32% | 19.34% | 14.12% | 10.68% | 13.45% |
The profitability ratios of Watts Water Technologies, Inc. show a generally positive trend over the past five years.
Operating return on assets (Operating ROA) has remained relatively stable, with a slight decrease from 16.77% in 2022 to 15.43% in 2023. This indicates that the company is generating operating income efficiently from its assets.
Return on assets (ROA) has shown a similar trend, with a decrease from 13.03% in 2022 to 11.35% in 2023. This ratio measures the company's overall profitability in relation to its total assets.
Return on total capital has fluctuated over the years, but the overall trend shows an increase from 15.65% in 2019 to 19.67% in 2023. This ratio reflects how effectively the company is generating profits from both its equity and debt capital.
Return on equity (ROE) has also demonstrated a positive trajectory, with an increase from 13.45% in 2019 to 17.32% in 2023. ROE indicates how well the company is utilizing shareholder equity to generate profits.
Overall, the profitability ratios of Watts Water Technologies, Inc. reflect a solid performance in generating profits relative to its assets, capital, and equity, showcasing an improvement in returns over the years.