Watts Water Technologies Inc (WTS)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,062,100 | 1,065,100 | 1,042,400 | 1,010,400 | 961,000 | 923,900 | 907,400 | 893,800 | 874,300 | 855,000 | 831,100 | 792,000 | 767,100 | 737,000 | 701,500 | 636,300 | 625,400 | 626,300 | 636,400 | 676,100 |
| Revenue (ttm) | US$ in thousands | 2,252,200 | 2,259,300 | 2,220,000 | 2,155,500 | 2,056,300 | 2,010,700 | 1,994,200 | 1,988,000 | 1,979,500 | 1,951,500 | 1,918,700 | 1,859,100 | 1,809,200 | 1,738,700 | 1,667,600 | 1,539,300 | 1,508,600 | 1,505,500 | 1,516,300 | 1,594,400 |
| Gross profit margin | 47.16% | 47.14% | 46.95% | 46.88% | 46.73% | 45.95% | 45.50% | 44.96% | 44.17% | 43.81% | 43.32% | 42.60% | 42.40% | 42.39% | 42.07% | 41.34% | 41.46% | 41.60% | 41.97% | 42.40% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,062,100K ÷ $2,252,200K
= 47.16%
Watts Water Technologies Inc has demonstrated a consistent improvement in its gross profit margin over the periods indicated. The gross profit margin started at 42.40% on March 31, 2020, and gradually increased to 47.16% by December 31, 2024. This indicates an efficient management of production costs and pricing strategy, leading to a higher percentage of sales revenue retained after accounting for the cost of goods sold.
The fluctuation in the gross profit margin was relatively minor, with most quarters showing incremental improvements. The company's ability to maintain and increase its gross profit margin over time suggests an effective cost control mechanism, favorable product pricing, or possibly an enhancement in product mix towards higher-margin products. Additionally, the upward trend in the gross profit margin reflects positively on the company's operational efficiency and potential for profitability.
Peer comparison
Dec 31, 2024