Watts Water Technologies Inc (WTS)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 400,600 | 390,000 | 383,900 | 374,200 | 359,500 | 345,500 | 336,200 | 328,200 | 315,000 | 311,300 | 296,700 | 271,000 | 259,700 | 252,200 | 237,200 | 204,800 | 192,200 | 185,300 | 172,700 | 190,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,707,900 | 1,689,100 | 1,618,200 | 1,551,800 | 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 |
| Return on total capital | 23.46% | 23.09% | 23.72% | 24.11% | 23.76% | 23.79% | 23.77% | 24.39% | 24.22% | 25.78% | 25.01% | 23.31% | 22.14% | 21.93% | 21.22% | 18.94% | 17.97% | 18.09% | 17.53% | 19.70% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $400,600K ÷ ($—K + $1,707,900K)
= 23.46%
Watts Water Technologies Inc has shown a relatively stable trend in its return on total capital over the period from March 31, 2020, to December 31, 2024. The return on total capital has ranged from a low of 17.53% in June 30, 2020, to a high of 25.78% in September 30, 2022.
Overall, the return on total capital has shown an increasing trend from March 31, 2020, to June 30, 2022, peaking at 25.78%. However, there was a slight dip in the return on total capital in the subsequent periods to December 31, 2024, averaging around 23-24%.
This indicates that Watts Water Technologies Inc has been successful in generating returns relative to the capital invested in the business, with a notable improvement in performance in the earlier years of the period under review. However, the company experienced some fluctuations in its return on total capital in the later years, suggesting potential challenges or changes in the business environment that impacted its profitability.
Peer comparison
Dec 31, 2024