Watts Water Technologies Inc (WTS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 262,100 | 251,500 | 165,700 | 114,300 | 131,500 |
| Total assets | US$ in thousands | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 | 1,723,100 |
| ROA | 11.35% | 13.03% | 8.93% | 6.58% | 7.63% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $262,100K ÷ $2,309,400K
= 11.35%
Watts Water Technologies, Inc. has shown a fluctuating trend in return on assets (ROA) over the past five years. The ROA decreased from 7.63% in 2019 to 6.58% in 2020 before increasing to 8.93% in 2021. Subsequently, there was a further increase to 13.03% in 2022. However, there was a slight decline in ROA to 11.35% in 2023.
Overall, the company's ROA performance indicates a positive trend since 2020, with the ROA consistently above 6% in the past three years. This suggests that Watts Water Technologies, Inc. is generating a favorable level of profit relative to its total assets, although there was a slight decline in the most recent year. Further analysis is warranted to understand the factors driving these changes in ROA and to assess the company's overall efficiency in utilizing its assets to generate profits.
Peer comparison
Dec 31, 2023