Watts Water Technologies Inc (WTS)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 262,100 | 275,000 | 267,900 | 261,700 | 251,500 | 223,000 | 210,700 | 178,500 | 165,700 | 154,800 | 141,300 | 124,000 | 114,300 | 116,900 | 116,300 | 132,500 | 131,500 | 132,000 | 131,200 | 130,800 |
| Total stockholders’ equity | US$ in thousands | 1,513,300 | 1,452,000 | 1,414,300 | 1,345,800 | 1,300,600 | 1,207,700 | 1,186,500 | 1,162,500 | 1,173,200 | 1,150,100 | 1,117,900 | 1,081,200 | 1,069,800 | 1,024,600 | 985,200 | 967,800 | 978,000 | 942,000 | 934,200 | 905,100 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $262,100K ÷ $1,513,300K
= 17.32%
Watts Water Technologies, Inc.'s return on equity (ROE) has been relatively stable over the past eight quarters, ranging from 15.35% in Q1 2022 to 19.45% in Q1 2023. The company's ROE reflects the efficiency with which it is utilizing its equity to generate profits for shareholders.
The ROE of Watts Water Technologies, Inc. has generally shown an increasing trend from Q1 2022 to Q1 2023, indicating improved profitability and efficiency in capital allocation. The company's ability to consistently maintain ROE above 15% indicates a favorable performance in generating returns on shareholders' equity.
Despite minor fluctuations, the overall trajectory of Watts Water Technologies, Inc.'s ROE suggests that the company is effectively leveraging its equity to enhance shareholder value. Further analysis and comparison with industry peers could provide additional insights into the company's competitive position and long-term sustainability.
Peer comparison
Dec 31, 2023