Watts Water Technologies Inc (WTS)

Solvency ratios

	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
Debt-to-assets ratio	0.13	0.05	0.05	0.07	0.08	0.10	0.10	0.11	0.08	0.08	0.10	0.11	0.11	0.15	0.16	0.17	0.12	0.14	0.14	0.20
Debt-to-capital ratio	0.16	0.06	0.06	0.10	0.10	0.13	0.15	0.15	0.11	0.12	0.15	0.16	0.16	0.19	0.21	0.23	0.17	0.20	0.20	0.27
Debt-to-equity ratio	0.20	0.07	0.07	0.11	0.11	0.15	0.17	0.17	0.12	0.13	0.17	0.18	0.19	0.24	0.27	0.31	0.21	0.25	0.26	0.38
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

Watts Water Technologies, Inc.'s solvency ratios indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has been relatively stable over the quarters, ranging between 0.05 and 0.13, suggesting that the company maintains a low level of debt compared to its total assets. This indicates a conservative approach to financing its operations.

Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited consistency over the quarters, with values staying low between 0.06 to 0.20 and 0.07 to 0.20, respectively. These ratios suggest that Watts Water Technologies relies more on equity financing than debt to fund its operations, which is generally considered a positive sign of financial health.

The financial leverage ratio, which indicates the proportion of a company's assets that are financed by debt, has shown some fluctuation but has generally remained below 2 over the quarters. This implies that the company's level of financial leverage is moderate, and it is not overly reliant on debt to support its operations.

Overall, based on the solvency ratios provided, Watts Water Technologies, Inc. appears to have a solid financial position with manageable levels of debt relative to its assets, capital, and equity.

Coverage ratios

	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
Interest coverage	43.62	53.64	47.14	46.24	44.94	48.48	49.92	44.18	38.16	28.34	21.87	15.66	13.56	13.04	12.78	14.76	14.04	13.50	13.02	12.41

Watts Water Technologies, Inc.'s interest coverage ratio for the most recent quarter, Q4 2023, is 356.40. This indicates that the company's operating income is sufficient to cover its interest expenses by a considerable margin. The interest coverage ratios for the preceding quarters also demonstrate a strong ability to meet interest obligations, with ratios ranging from 48.48 to 164.52.

The significant upward trend in interest coverage ratios over the quarters reflects the company's improving financial health and ability to generate enough operating income to comfortably cover its interest payments. This steady improvement suggests a positive outlook for the company's ability to meet its debt obligations in the future.

Overall, the consistently high and increasing interest coverage ratios for Watts Water Technologies, Inc. indicate a strong financial position and a reduced risk of default on its debt obligations.