Watts Water Technologies Inc (WTS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 1,723,100 | 1,696,300 | 1,678,400 | 1,683,400 |
| 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 |
| Financial leverage ratio | 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 | 1.76 | 1.80 | 1.80 | 1.86 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,309,400K ÷ $1,513,300K
= 1.53
Watts Water Technologies, Inc.'s financial leverage ratio has exhibited fluctuations over the past eight quarters, ranging from 1.39 to 1.64. The ratio stood at 1.53 in Q4 2023, suggesting that the company had $1.53 in debt for every $1 of equity.
The trend indicates that the company's reliance on debt to finance its operations has varied, with Q2 and Q3 of 2022 showing higher leverage compared to the most recent quarters. Although the ratio has not shown a clear and consistent direction over the period, it is important for stakeholders to monitor closely as changes in leverage can impact the company's financial risk and performance.
Peer comparison
Dec 31, 2023