Watts Water Technologies Inc (WTS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 | 1,723,100 |
| Total stockholders’ equity | US$ in thousands | 1,513,300 | 1,300,600 | 1,173,200 | 1,069,800 | 978,000 |
| Financial leverage ratio | 1.53 | 1.48 | 1.58 | 1.62 | 1.76 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,309,400K ÷ $1,513,300K
= 1.53
The financial leverage ratio of Watts Water Technologies, Inc. has shown a decreasing trend over the past five years, declining from 1.76 in 2019 to 1.53 in 2023. This indicates that the company has been relying less on debt to finance its assets and operations over the years. A decrease in the financial leverage ratio suggests a lower degree of financial risk and greater financial stability for the company. However, it is essential to further analyze other financial metrics and factors influencing the capital structure to gain a more comprehensive understanding of the company's overall leverage position and financial health.
Peer comparison
Dec 31, 2023