Watts Water Technologies Inc (WTS)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,062,000 | 960,900 | 874,300 | 767,100 | 625,400 |
| Revenue | US$ in thousands | 2,252,200 | 2,056,300 | 1,979,500 | 1,809,200 | 1,508,600 |
| Gross profit margin | 47.15% | 46.73% | 44.17% | 42.40% | 41.46% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,062,000K ÷ $2,252,200K
= 47.15%
Watts Water Technologies Inc has shown a consistent improvement in its gross profit margin over the years, reflecting its ability to effectively manage production costs and generate higher revenues from its products. The gross profit margin increased from 41.46% as of December 31, 2020, to 47.15% as of December 31, 2024.
This upward trend indicates that the company has been successful in optimizing its manufacturing processes, negotiating better pricing with suppliers, or increasing the selling prices of its products to maintain profitability. A rising gross profit margin is generally a positive sign for investors, as it signifies the company's efficiency in generating profits from its core operations.
Overall, the progressive improvement in Watts Water Technologies Inc's gross profit margin suggests that the company has been successful in enhancing its operational efficiency and maintaining a competitive position in its industry.
Peer comparison
Dec 31, 2024