Watts Water Technologies Inc (WTS)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 262,100 | 251,500 | 165,700 | 114,300 | 131,500 |
| Revenue | US$ in thousands | 2,048,400 | 1,972,700 | 1,803,100 | 1,494,900 | 1,586,400 |
| Net profit margin | 12.80% | 12.75% | 9.19% | 7.65% | 8.29% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $262,100K ÷ $2,048,400K
= 12.80%
The net profit margin of Watts Water Technologies, Inc. has shown a generally positive trend over the past five years. The company's net profit margin increased from 8.22% in 2019 to 9.16% in 2021, representing significant growth in profitability during this period. This improvement continued in 2022 and 2023, where the net profit margins were 12.71% and 12.75%, respectively.
The consistent increase in net profit margin indicates that the company has been effective in managing its costs and expenses relative to its revenue. This efficiency in cost control and operational management has translated into higher profitability for Watts Water Technologies, Inc. over the years.
Overall, the upward trend in net profit margin suggests that the company has been successful in enhancing its operational efficiency and generating healthy profits relative to its revenue, which is a positive indicator of its financial performance and sustainability.
Peer comparison
Dec 31, 2023