Watts Water Technologies Inc (WTS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 | 1,723,100 |
| Operating ROA | 15.19% | 16.31% | 12.91% | 10.42% | 11.44% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $350,900K ÷ $2,309,400K
= 15.19%
Watts Water Technologies, Inc.'s operating return on assets (ROA) has exhibited fluctuating trends over the past five years. The company's operating ROA was 15.43% in 2023, down from 16.77% in 2022 but higher than the 13.95% recorded in 2021. This suggests a slight decrease in the efficiency of generating earnings from its operating assets compared to the prior year. However, the 2023 operating ROA is notably better than the figures for 2020 and 2019, which stood at 11.10% and 11.69% respectively.
Overall, the trend in operating ROA for Watts Water Technologies, Inc. indicates a relatively healthy performance in utilizing its assets to generate operating income. The company should continue to monitor and potentially improve its operating ROA to ensure sustained profitability and operational efficiency in the future.
Peer comparison
Dec 31, 2023