Watts Water Technologies Inc (WTS)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.40 | 1.53 | 1.48 | 1.58 | 1.62 |
Based on the provided data for Watts Water Technologies Inc, the solvency ratios indicate a very strong financial position in terms of debt management and leverage:
1. Debt-to-assets ratio: The ratio has consistently been at 0.00 over the years from 2020 to 2024. This indicates that the company has zero debt in relation to its total assets, highlighting a low level of financial risk.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 throughout the years under consideration. This suggests that the company is not relying on debt to finance its operations or investments, which is a positive sign for solvency.
3. Debt-to-equity ratio: The debt-to-equity ratio also stands at 0.00 for all the years, indicating that Watts Water Technologies Inc has no debt in relation to its equity. This implies a strong capital structure with minimal reliance on debt financing.
4. Financial leverage ratio: The financial leverage ratio has shown a decreasing trend from 1.62 in 2020 to 1.40 in 2024. Although this ratio measures the extent to which the company uses debt to finance its assets, the decreasing trend indicates a reduction in financial risk and dependency on debt.
In conclusion, based on the solvency ratios provided, Watts Water Technologies Inc appears to have a very solid financial position with minimal debt and strong capital structure, reflecting prudent financial management and a lower level of risk in its operations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 27.26 | 43.62 | 44.94 | 38.16 | 13.56 |
Based on the provided data, the interest coverage ratio for Watts Water Technologies Inc has shown a positive increasing trend over the years. Starting at 13.56 in 2020, it has significantly improved to 38.16 in 2021, further increasing to 44.94 in 2022. The trend continued with a slight decrease to 43.62 in 2023 and a further decline to 27.26 in 2024.
The interest coverage ratio measures the company's ability to meet interest payments on its debt obligations. A higher interest coverage ratio indicates that the company is more capable of servicing its interest payments using its operating income. In this case, the increasing trend from 2020 to 2022 reflects an improving financial position and a strengthened ability to cover interest expenses. However, the slight decrease in 2023 and a more significant decline in 2024 might indicate a need to monitor the company's debt levels and operating profitability to ensure continued financial stability.