Watts Water Technologies Inc (WTS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 391,800 | 385,400 | 379,300 | 368,000 | 354,800 | 339,400 | 332,700 | 328,200 | 315,000 | 310,400 | 294,700 | 251,500 | 239,600 | 231,400 | 214,600 | 192,900 | 181,100 | 174,000 | 174,900 | 198,200 |
| Total assets | US$ in thousands | 2,397,000 | 2,399,100 | 2,383,300 | 2,332,400 | 2,309,400 | 2,017,600 | 2,004,400 | 1,990,000 | 1,930,900 | 1,885,600 | 1,934,300 | 1,903,300 | 1,855,600 | 1,863,200 | 1,855,300 | 1,784,400 | 1,738,200 | 1,709,000 | 1,648,300 | 1,767,400 |
| Operating ROA | 16.35% | 16.06% | 15.91% | 15.78% | 15.36% | 16.82% | 16.60% | 16.49% | 16.31% | 16.46% | 15.24% | 13.21% | 12.91% | 12.42% | 11.57% | 10.81% | 10.42% | 10.18% | 10.61% | 11.21% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $391,800K ÷ $2,397,000K
= 16.35%
Operating Return on Assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. Watts Water Technologies Inc's Operating ROA has shown fluctuations over the given time period, ranging from 10.18% to 16.82%.
Analyzing the trend, we observe a gradual increase in Operating ROA from March 31, 2020, to December 31, 2022. However, there was a slight dip in the ratio by the end of March 2023 at 16.49%. Subsequently, there was a relatively stable performance in the range of 15.36% to 16.35% from March 31, 2023, to December 31, 2024.
Overall, the increasing trend in Operating ROA from March 31, 2020, to December 31, 2022, followed by the stable performance in the later periods, indicates that Watts Water Technologies Inc has been effectively utilizing its operational assets to generate profits. A higher Operating ROA reflects the company's efficiency in generating earnings from its asset base, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024