Watts Water Technologies Inc (WTS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 390,400 | 356,400 | 315,000 | 239,600 | 181,100 |
| Total assets | US$ in thousands | 2,397,000 | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 |
| Operating ROA | 16.29% | 15.43% | 16.31% | 12.91% | 10.42% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $390,400K ÷ $2,397,000K
= 16.29%
Operating ROA is a metric that measures a company's efficiency in generating profits from its assets used in operations. Watts Water Technologies Inc's operating ROA has shown a positive trend over the period from December 31, 2020, to December 31, 2024. The operating ROA increased from 10.42% in 2020 to 16.29% in 2024, indicating an improvement in the company's ability to generate profits from its operational assets.
This upward trend in operating ROA suggests that Watts Water Technologies Inc has been effectively utilizing its assets to generate operating income. The company's management may have implemented strategies to enhance operational efficiency and profitability, leading to the steady improvement in operating ROA over the years.
A higher operating ROA reflects better efficiency in converting assets into profits, which is a positive indicator for investors and stakeholders. It signifies that Watts Water Technologies Inc is effectively managing its operations to maximize returns on its assets. Continued monitoring of this metric will be crucial to assess the company's operational performance and efficiency in the future.
Peer comparison
Dec 31, 2024