Watts Water Technologies Inc (WTS)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 349,500 | 307,600 | 234,100 | 167,000 | 183,900 |
| Revenue | US$ in thousands | 2,048,400 | 1,972,700 | 1,803,100 | 1,494,900 | 1,586,400 |
| Pretax margin | 17.06% | 15.59% | 12.98% | 11.17% | 11.59% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $349,500K ÷ $2,048,400K
= 17.06%
Watts Water Technologies, Inc.'s pretax margin has shown a consistent upward trend over the past five years. The pretax margin increased from 11.49% in 2019 to 17.00% in 2023, indicating improved efficiency in generating profits before taxes.
This steady increase in pretax margin signifies that the company has been effectively managing its operating expenses and generating higher profits relative to its revenue. It suggests that Watts Water Technologies has been successful in controlling costs and maximizing profitability.
The significant improvement in pretax margin highlights the company's operational efficiency and ability to convert sales into profits. This trend indicates positive financial performance and managerial effectiveness in optimizing the company's profitability over the years.
Peer comparison
Dec 31, 2023