Watts Water Technologies Inc (WTS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.15% | 46.73% | 44.17% | 42.40% | 41.46% |
| Operating profit margin | 17.33% | 17.33% | 15.91% | 13.24% | 12.00% |
| Pretax margin | 17.14% | 17.00% | 15.54% | 12.94% | 11.07% |
| Net profit margin | 12.93% | 12.75% | 12.71% | 9.16% | 7.58% |
Watts Water Technologies Inc has shown consistent improvement in its profitability ratios over the years.
The Gross Profit Margin has increased steadily from 41.46% in December 2020 to 47.15% in December 2024, indicating the company's ability to efficiently control production costs and generate higher margins on its products.
The Operating Profit Margin has also demonstrated positive growth, rising from 12.00% in December 2020 to 17.33% in both December 2023 and 2024. This suggests that the company has effectively managed its operating expenses while increasing its operating income.
The Pretax Margin has shown a similar upward trend, increasing from 11.07% in December 2020 to 17.14% in December 2024. This indicates that the company has been able to improve its profitability before accounting for taxes by enhancing revenue generation and cost management.
Lastly, the Net Profit Margin has consistently increased from 7.58% in December 2020 to 12.93% in December 2024, showcasing the company's ability to convert its revenue into bottom-line profit after accounting for all expenses and taxes.
Overall, the improving profitability margins reflect Watts Water Technologies Inc's effective management of costs, operational efficiency, and successful revenue growth strategies over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.29% | 15.43% | 16.31% | 12.91% | 10.42% |
| Return on assets (ROA) | 12.15% | 11.35% | 13.03% | 8.93% | 6.58% |
| Return on total capital | 23.46% | 23.64% | 24.19% | 20.49% | 16.85% |
| Return on equity (ROE) | 17.05% | 17.32% | 19.34% | 14.12% | 10.68% |
Watts Water Technologies Inc has shown a positive trend in profitability ratios over the past five years.
- The Operating Return on Assets (Operating ROA) has increased steadily from 10.42% in 2020 to 16.29% in 2024, indicating the company's ability to generate profits from its operating activities relative to its total assets.
- Similarly, the Return on Assets (ROA) has shown an upward trajectory, rising from 6.58% in 2020 to 12.15% in 2024. This ratio reflects the company's overall efficiency in generating profits from its assets.
- The Return on Total Capital has exhibited a consistent growth pattern, climbing from 16.85% in 2020 to 23.46% in 2024, demonstrating the company's profitability in relation to both equity and debt capital invested.
- Moreover, the Return on Equity (ROE) has also shown an upward trend, increasing from 10.68% in 2020 to 17.05% in 2024, indicating the return generated for the company's shareholders based on their equity investment.
Overall, Watts Water Technologies Inc's profitability ratios have improved over the years, reflecting the company's effective management of assets and capital to generate returns for its stakeholders.