Watts Water Technologies Inc (WTS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 350,900 | 315,000 | 239,600 | 181,100 | 197,100 |
| Revenue | US$ in thousands | 2,048,400 | 1,972,700 | 1,803,100 | 1,494,900 | 1,586,400 |
| Operating profit margin | 17.13% | 15.97% | 13.29% | 12.11% | 12.42% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $350,900K ÷ $2,048,400K
= 17.13%
The operating profit margin of Watts Water Technologies, Inc. has shown a positive trend over the past five years, indicating an improvement in the company's operational efficiency and profitability. The margin has steadily increased from 12.58% in 2019 to 17.33% in 2023. This suggests that the company has been able to better control its operating expenses relative to its revenue generation, resulting in a higher percentage of income derived from its core business operations. This improvement in operating profit margin reflects positively on the company's management of costs and ability to generate higher profits from its operations over time. It also signals potential strength in the company's business model and competitive position within its industry.
Peer comparison
Dec 31, 2023