Watts Water Technologies Inc (WTS)
Debt-to-equity 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-equity ratio | 0.20 | 0.11 | 0.12 | 0.19 | 0.21 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $298,300K ÷ $1,513,300K
= 0.20
The debt-to-equity ratio of Watts Water Technologies, Inc. has exhibited fluctuations over the past five years.
In 2019, the company had a debt-to-equity ratio of 0.32, indicating a higher reliance on debt to finance its operations compared to shareholders' equity. However, the ratio decreased to 0.19 in 2020, suggesting a lower proportion of debt in the capital structure relative to equity.
In 2021, the ratio remained relatively stable at 0.12, indicating a conservative approach to debt financing. This was followed by a slight increase to 0.11 in 2022, reflecting a further reduction in debt relative to equity.
Notably, in 2023, the debt-to-equity ratio increased to 0.20, signaling a higher proportion of debt compared to equity. This shift may indicate a strategic decision to leverage more debt to fund growth opportunities or operational needs.
Overall, the trend in Watts Water Technologies, Inc.'s debt-to-equity ratio suggests a mix of conservative and more leveraged approaches to capital structure management over the past five years. Investors and stakeholders may consider monitoring future changes in the ratio to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023