Watts Water Technologies Inc (WTS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,707,900 | 1,513,300 | 1,300,600 | 1,173,200 | 1,069,800 |
| ROE | 17.05% | 17.32% | 19.34% | 14.12% | 10.68% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $291,200K ÷ $1,707,900K
= 17.05%
To analyze the return on equity (ROE) of Watts Water Technologies Inc based on the provided data, we can see a positive trend over the years as follows:
1. In December 31, 2020, the ROE was recorded at 10.68%. This indicates that for every dollar of shareholders' equity invested, the company generated a return of 10.68% during that period.
2. By December 31, 2021, the ROE increased to 14.12%, showing an improvement in the company's ability to generate profits from its equity.
3. The trend continued to show growth, reaching 19.34% by December 31, 2022. This significant increase in ROE demonstrates a higher efficiency in utilizing shareholders' equity to generate profits.
4. In December 31, 2023, the ROE slightly decreased to 17.32%, but it still remained at a relatively high level compared to the initial years.
5. Finally, as of December 31, 2024, the ROE was recorded at 17.05%, indicating that the company continued to maintain a strong ability to generate returns for its shareholders.
Overall, the increasing trend in ROE from 2020 to 2022 followed by a slight decrease in 2023 and stabilization in 2024 suggests that Watts Water Technologies Inc has been effectively utilizing its equity to generate profits and create value for its shareholders. Investors may view this trend positively as it reflects the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2024