Watts Water Technologies Inc (WTS)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.16 | 0.06 | 0.06 | 0.10 | 0.10 | 0.13 | 0.15 | 0.15 | 0.11 | 0.12 | 0.15 | 0.16 | 0.16 | 0.19 | 0.21 | 0.23 | 0.17 | 0.20 | 0.20 | 0.27 |
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 of Watts Water Technologies, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the ratio was 0.16, representing an increase from the previous quarter's 0.06. This suggests that the company increased its debt relative to its total capital structure during this period.
Comparing Q4 2023 to Q4 2022, there was a notable increase in the debt-to-capital ratio from 0.10 to 0.16, indicating a higher proportion of debt in the capital structure at the end of 2023 compared to the prior year.
Although the ratio decreased in Q2 2023 and Q3 2023 to 0.06, it is important to note that these values were relatively low compared to other quarters. This may indicate that the company was managing its debt levels effectively during those periods.
Overall, the debt-to-capital ratio of Watts Water Technologies, Inc. has been somewhat volatile, with fluctuations observed from quarter to quarter. Investors and analysts may need to further assess the company's debt management strategies and financial health to better understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023