Watts Water Technologies Inc (WTS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 291,200 | 262,100 | 251,500 | 165,700 | 114,300 |
| Total assets | US$ in thousands | 2,397,000 | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 |
| ROA | 12.15% | 11.35% | 13.03% | 8.93% | 6.58% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $291,200K ÷ $2,397,000K
= 12.15%
Based on the provided data, Watts Water Technologies Inc's return on assets (ROA) has shown a positive trend over the past five years. The ROA increased from 6.58% as of December 31, 2020, to 12.15% as of December 31, 2024. This improvement indicates that the company has been utilizing its assets more efficiently to generate profits for its shareholders.
The ROA of 8.93% as of December 31, 2021, indicated a significant improvement from the previous year. Subsequently, the ROA continued to rise, reaching its peak at 13.03% on December 31, 2022, before slightly decreasing to 11.35% on December 31, 2023, and then rising again to 12.15% on December 31, 2024.
Overall, the increasing trend in ROA reflects positively on the company's management of its assets to generate profits. It suggests that Watts Water Technologies Inc has been effectively utilizing its resources to generate returns for its shareholders over the analyzed period.
Peer comparison
Dec 31, 2024