Watts Water Technologies Inc (WTS)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 386,000 | 349,500 | 307,600 | 234,100 | 167,000 |
| Revenue | US$ in thousands | 2,252,200 | 2,056,300 | 1,979,500 | 1,809,200 | 1,508,600 |
| Pretax margin | 17.14% | 17.00% | 15.54% | 12.94% | 11.07% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $386,000K ÷ $2,252,200K
= 17.14%
Watts Water Technologies Inc has displayed a positive trend in its pretax margin over the past five years. The pretax margin has increased steadily from 11.07% in December 2020 to 17.14% in December 2024. This indicates that the company has been successful in controlling its operating expenses and generating higher earnings before taxes relative to its total revenue.
The consistent improvement in the pretax margin reflects the company's ability to effectively manage costs and increase profitability over the years. This trend suggests that Watts Water Technologies Inc has implemented sound financial strategies and operational efficiencies to enhance its overall financial performance.
A rising pretax margin is a positive indicator for investors and stakeholders, as it demonstrates the company's ability to generate stronger operating profits before accounting for taxes. It also signifies that Watts Water Technologies Inc has been successfully leveraging its revenue to enhance its bottom line.
Peer comparison
Dec 31, 2024