Watts Water Technologies Inc (WTS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 357,700 | 343,300 | 334,700 | 328,300 | 314,600 | 310,300 | 294,500 | 251,800 | 240,400 | 232,400 | 214,300 | 192,600 | 180,300 | 173,400 | 176,300 | 199,300 | 198,000 | 195,800 | 194,000 | 193,600 |
| Long-term debt | US$ in thousands | 298,300 | 98,200 | 98,000 | 147,800 | 147,600 | 182,400 | 202,200 | 202,000 | 141,900 | 151,700 | 191,500 | 198,600 | 198,200 | 247,900 | 262,500 | 296,900 | 204,200 | 238,500 | 238,800 | 341,100 |
| 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 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $357,700K ÷ ($298,300K + $1,513,300K)
= 19.74%
Watts Water Technologies, Inc. has consistently delivered strong returns on total capital over the last eight quarters. The return on total capital has ranged from 19.67% to 22.72% during this period, showcasing the company's efficient utilization of its total capital resources to generate profits.
The trend indicates a relatively stable performance, with minor fluctuations seen in the return on total capital over the quarters. Overall, the company has maintained healthy returns, reflecting its ability to effectively allocate capital and generate value for its shareholders.
Investors and stakeholders may view this consistent track record of strong returns on total capital positively as it signifies the company's ability to generate earnings relative to the total capital deployed in its operations.
Peer comparison
Dec 31, 2023