Watts Water Technologies Inc (WTS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,513,300 | 1,300,600 | 1,173,200 | 1,069,800 | 978,000 |
| Debt-to-capital ratio | 0.16 | 0.10 | 0.11 | 0.16 | 0.17 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $298,300K ÷ ($298,300K + $1,513,300K)
= 0.16
The debt-to-capital ratio for Watts Water Technologies, Inc. has shown fluctuations over the past five years. As of December 31, 2023, the ratio stood at 0.16, indicating that 16% of the company's capital structure was funded by debt. This represents an increase from the previous year's ratio of 0.10.
When compared to the ratios from 2021 and 2020, where the ratios were 0.11 and 0.16 respectively, it can be seen that the company's debt-to-capital structure has varied over this period. The ratio was highest in 2019 at 0.24, signifying that a higher proportion of the company's funding was derived from debt in that particular year.
Overall, the trend in the debt-to-capital ratio for Watts Water Technologies, Inc. suggests fluctuations in the company's leverage over the past five years. It would be essential for stakeholders to closely monitor this ratio to assess the company's financial risk and capital structure management.
Peer comparison
Dec 31, 2023