Watts Water Technologies Inc (WTS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 400,600 | 390,000 | 383,900 | 374,200 | 359,500 | 345,500 | 336,200 | 328,200 | 315,000 | 311,300 | 296,700 | 271,000 | 259,700 | 252,200 | 237,200 | 204,800 | 192,200 | 185,300 | 172,700 | 190,700 |
| Interest expense (ttm) | US$ in thousands | 14,700 | 15,700 | 13,300 | 10,900 | 8,200 | 6,400 | 7,100 | 7,100 | 7,000 | 6,400 | 5,900 | 5,700 | 6,300 | 8,200 | 9,800 | 12,300 | 13,300 | 13,300 | 13,800 | 13,500 |
| Interest coverage | 27.25 | 24.84 | 28.86 | 34.33 | 43.84 | 53.98 | 47.35 | 46.23 | 45.00 | 48.64 | 50.29 | 47.54 | 41.22 | 30.76 | 24.20 | 16.65 | 14.45 | 13.93 | 12.51 | 14.13 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $400,600K ÷ $14,700K
= 27.25
The interest coverage ratio of Watts Water Technologies Inc has generally been showing a positive trend over the years based on the provided data. The ratio has increased from 14.13 as of March 31, 2020, to 27.25 as of December 31, 2024.
This improvement indicates that the company's ability to cover its interest expenses with its operating income has strengthened over time. A higher interest coverage ratio suggests that Watts Water Technologies Inc is more capable of meeting its interest obligations using its earnings.
The company's interest coverage ratio peaked at 53.98 as of September 30, 2023, before experiencing a slight decline in the following quarters. It is important to note that the interest coverage ratio exceeding 1 indicates that Watts Water Technologies Inc is generating enough income to cover its interest payments.
Overall, the increasing trend in the interest coverage ratio signifies the company's improving financial health and its ability to service its debt obligations comfortably.
Peer comparison
Dec 31, 2024