Watts Water Technologies Inc (WTS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,397,000 | 2,399,100 | 2,383,300 | 2,332,400 | 2,309,400 | 2,017,600 | 2,004,400 | 1,990,000 | 1,930,900 | 1,885,600 | 1,934,300 | 1,903,300 | 1,855,600 | 1,863,200 | 1,855,300 | 1,784,400 | 1,738,200 | 1,709,000 | 1,648,300 | 1,767,400 |
| Total stockholders’ equity | US$ in thousands | 1,707,900 | 1,689,100 | 1,618,200 | 1,551,800 | 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 |
| Financial leverage ratio | 1.40 | 1.42 | 1.47 | 1.50 | 1.53 | 1.39 | 1.42 | 1.48 | 1.48 | 1.56 | 1.63 | 1.64 | 1.58 | 1.62 | 1.66 | 1.65 | 1.62 | 1.67 | 1.67 | 1.83 |
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 been showing a decreasing trend from 1.83 as of March 31, 2020, to 1.40 as of December 31, 2024. This indicates that the company's reliance on debt in its capital structure has been gradually decreasing over the years. A decreasing financial leverage ratio is generally considered positive as it suggests that the company is becoming less leveraged and potentially less risky. However, it is important to note that a very low leverage ratio may also imply underutilization of debt financing, which can limit the company's growth opportunities. Overall, the declining trend in the financial leverage ratio of Watts Water Technologies Inc signals a more conservative approach to financial risk management.
Peer comparison
Dec 31, 2024