Watts Water Technologies Inc (WTS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,397,000 | 2,309,400 | 1,930,900 | 1,855,600 | 1,738,200 |
| Total stockholders’ equity | US$ in thousands | 1,707,900 | 1,513,300 | 1,300,600 | 1,173,200 | 1,069,800 |
| Financial leverage ratio | 1.40 | 1.53 | 1.48 | 1.58 | 1.62 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,397,000K ÷ $1,707,900K
= 1.40
The financial leverage ratio of Watts Water Technologies Inc has shown a downward trend over the period from December 31, 2020, to December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its assets and operations. A lower financial leverage ratio suggests that the company has a healthier balance sheet with less debt relative to its equity. However, it is essential to note that a financial leverage ratio of 1.40 as of December 31, 2024, may still imply some level of debt usage, which could be at a manageable level for the company. Overall, the declining trend in the financial leverage ratio reflects a prudential approach by Watts Water Technologies Inc towards managing its debt levels and minimizing financial risks.
Peer comparison
Dec 31, 2024