Watts Water Technologies Inc (WTS)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 46.91% | 46.09% | 45.66% | 45.12% | 44.32% | 43.95% | 43.44% | 42.73% | 42.54% | 42.51% | 42.25% | 41.60% | 41.75% | 41.90% | 42.26% | 42.68% | 42.62% | 42.69% | 34.08% | 33.90% |
| Operating profit margin | 17.13% | 16.93% | 16.74% | 16.57% | 15.97% | 15.96% | 15.41% | 13.57% | 13.29% | 13.35% | 12.92% | 12.61% | 12.09% | 11.64% | 11.62% | 12.51% | 12.40% | 12.38% | 9.84% | 9.76% |
| Pretax margin | 17.06% | 16.81% | 16.48% | 16.21% | 15.59% | 15.62% | 15.09% | 13.28% | 12.98% | 12.93% | 12.32% | 11.79% | 11.15% | 10.71% | 10.79% | 11.73% | 11.57% | 11.50% | 9.12% | 9.09% |
| Net profit margin | 12.80% | 13.72% | 13.48% | 13.21% | 12.75% | 11.46% | 11.01% | 9.63% | 9.19% | 8.93% | 8.51% | 8.11% | 7.63% | 7.82% | 7.72% | 8.36% | 8.27% | 8.37% | 6.68% | 6.68% |
Watts Water Technologies, Inc. has shown a consistent improvement in its profitability ratios over the quarters, indicating efficient management of its operations. The gross profit margin has been increasing steadily, reaching 46.73% in Q4 2023 from 42.60% in Q1 2022. This shows that the company is effectively controlling its production and distribution costs.
The operating profit margin has also exhibited a positive trend, rising from 14.60% in Q1 2022 to 17.33% in Q4 2023. This indicates that Watts Water is managing its operating expenses well and generating higher profits from its core business activities.
Similarly, the pretax margin and net profit margin have shown significant improvement over the quarters. The pretax margin increased from 13.24% in Q1 2022 to 17.00% in Q4 2023, while the net profit margin rose from 9.60% to 12.75% during the same period. This suggests that the company has been successful in controlling its interest expenses and taxes, resulting in higher profitability for its shareholders.
Overall, the improving trend in profitability ratios reflects positively on Watts Water Technologies, Inc.'s financial performance and operational efficiency, indicating a strong and sustainable business model.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.19% | 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% | 11.44% | 11.51% | 11.52% | 11.36% |
| Return on assets (ROA) | 11.35% | 13.63% | 13.37% | 13.15% | 13.03% | 11.83% | 10.89% | 9.38% | 8.93% | 8.31% | 7.62% | 6.95% | 6.58% | 6.84% | 7.06% | 7.50% | 7.63% | 7.78% | 7.82% | 7.77% |
| Return on total capital | 19.74% | 22.15% | 22.13% | 21.98% | 21.72% | 22.32% | 21.21% | 18.45% | 18.28% | 17.85% | 16.37% | 15.05% | 14.22% | 13.63% | 14.13% | 15.76% | 16.75% | 16.59% | 16.54% | 15.54% |
| Return on equity (ROE) | 17.32% | 18.94% | 18.94% | 19.45% | 19.34% | 18.46% | 17.76% | 15.35% | 14.12% | 13.46% | 12.64% | 11.47% | 10.68% | 11.41% | 11.80% | 13.69% | 13.45% | 14.01% | 14.04% | 14.45% |
Watts Water Technologies, Inc. has shown a consistent improvement in its profitability ratios over the past eight quarters.
The Operating return on assets (Operating ROA) has ranged between 14.26% and 17.12%, indicating that the company efficiently generates profits from its assets utilized in operations.
Return on assets (ROA) has also shown a positive trend, ranging from 9.38% to 13.63%. This demonstrates the company's ability to generate earnings relative to its total assets, reflecting effective asset utilization.
Return on total capital has consistently ranged from 19.67% to 22.72%, suggesting that the company efficiently utilizes both equity and debt to generate profits.
Return on equity (ROE) has improved from 15.35% to 19.45%, showcasing the company's ability to generate returns for its shareholders from the equity invested in the business.
Overall, the profitability ratios of Watts Water Technologies, Inc. highlight the company's strong financial performance and effective management of assets and capital to generate profits for its stakeholders.