Watts Water Technologies Inc (WTS)
Debt-to-equity 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-equity ratio | 0.20 | 0.07 | 0.07 | 0.11 | 0.11 | 0.15 | 0.17 | 0.17 | 0.12 | 0.13 | 0.17 | 0.18 | 0.19 | 0.24 | 0.27 | 0.31 | 0.21 | 0.25 | 0.26 | 0.38 |
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 shown a decreasing trend over the past eight quarters, decreasing from 0.17 in Q1 2022 to 0.20 in Q4 2023. This indicates that the company has been relying less on debt financing and more on equity financing in its capital structure.
A lower debt-to-equity ratio suggests that the company is less reliant on borrowing to fund its operations, which can be viewed positively by investors and creditors as it signifies a lower financial risk.
Overall, the decreasing trend in the debt-to-equity ratio of Watts Water Technologies, Inc. reflects a more conservative approach to capital structure management, which may contribute to long-term financial stability and sustainability.
Peer comparison
Dec 31, 2023