Watts Water Technologies Inc (WTS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 298,300 | 147,600 | 141,900 | 198,200 | 204,200 |
| Total assets | US$ in thousands | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 | 1,723,100 |
| Debt-to-assets ratio | 0.13 | 0.08 | 0.08 | 0.11 | 0.12 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $298,300K ÷ $2,309,400K
= 0.13
The debt-to-assets ratio of Watts Water Technologies, Inc. has shown some fluctuations over the past five years. In 2023, the ratio increased to 0.13 from 0.08 in 2022, which indicates that the company's debt level relative to its total assets has slightly risen. However, compared to the ratios in 2021 and 2020, which were also at 0.08, the current ratio is still higher.
In 2019, the debt-to-assets ratio was highest at 0.18, suggesting a relatively higher proportion of debt financing compared to total assets. The decreasing trend from 2019 to 2022 indicated an improvement in the company's debt management, as it reduced its debt exposure in relation to its asset base.
While the recent uptick in the ratio in 2023 might raise some concerns about the company taking on more debt, it is essential to assess this ratio in conjunction with other financial metrics and industry benchmarks to get a more comprehensive understanding of Watts Water Technologies, Inc.'s overall financial health and leverage position.
Peer comparison
Dec 31, 2023