Watts Water Technologies (Watts Water Technologies) Debt-to-EBITDA

: 0.80 (As of Dec. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

Watts Water Technologies's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $0 Mil. Watts Water Technologies's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $298 Mil. Watts Water Technologies's annualized EBITDA for the quarter that ended in Dec. 2023 was $374 Mil. Watts Water Technologies's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.80.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Watts Water Technologies's Debt-to-EBITDA or its related term are showing as below:

WTS' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.82 Med: 1.07 Max: 3.84
Current: 0.74

During the past 13 years, the highest Debt-to-EBITDA Ratio of Watts Water Technologies was 3.84. The lowest was -16.82. And the median was 1.07.

WTS's Debt-to-EBITDA is ranked better than
68.78% of 2303 companies
in the Industrial Products industry
Industry Median: 1.71 vs WTS: 0.74

Watts Water Technologies Debt-to-EBITDA Historical Data

The historical data trend for Watts Water Technologies's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Watts Water Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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1.26

0.87

0.50

0.42

0.74

Watts Water Technologies Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															0.49	0.39	0.22	0.25	0.80

Competitive Comparison

For the Specialty Industrial Machinery subindustry, Watts Water Technologies's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Watts Water Technologies Debt-to-EBITDA Distribution

For the Industrial Products industry and Industrials sector, Watts Water Technologies's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Watts Water Technologies's Debt-to-EBITDA falls into.

Watts Water Technologies Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Watts Water Technologies's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	298.3)	/	401
	=	0.74

Watts Water Technologies's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(0	+	298.3)	/	374.4
	=	0.80

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

Watts Water Technologies (NYSE:WTS) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Watts Water Technologies Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Watts Water Technologies's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Watts Water Technologies (Watts Water Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Watts Water Technologies Inc (NYSE:WTS) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

W3W:Germany

Address

815 Chestnut Street, North Andover, MA, USA, 01845

Website

https://www.wattswater.com

Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products. The company's product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, heating solutions, and heating systems; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. The company generates the majority of its revenue from markets in the Americas and in Europe, the Middle East, and Africa.

Executives

Kenneth Robert Lepage	officer: General Counsel	WATTS WATER TECHNOLOGIES, INC., 815 CHESTNUT STREET, NORTH ANDOVER MA 01845
Shashank Patel	officer: Chief Financial Officer	1 INTERNATIONAL DRIVE, RYE BROOK NY 10573
Elie Melhem	officer: President, Asia	WATTS WATER TECHNOLOGIES, INC., 815 CHESTNUT STREET, NORTH ANDOVER MA 01845
Joseph T Noonan	director	WATTS WATER TECHNOLOGIES, INC., 815 CHESTNUT STREET, NORTH ANDOVER MA 01845
Timothy P Horne	director, 10 percent owner	WATTS INDUSTRIES INC, ROUTE 815 CHESTNUT ST, NORTH ANDOVER MA 01845
Pagano Robert J Jr	officer: President and CEO	WATTS WATER TECHNOLOGIES INC., 815 CHESTNUT ST, NORTH ANDOVER MA 01845
Andre Dhawan	officer: Chief Operating Officer	WATTS WATER TECHNOLOGIES INC., 815 CHESTNUT ST., NORTH ANDOVER MA 01845
Monica Barry	officer: Chief HR Officer	WATTS WATER TECHNOLOGIES INC., 815 CHESTNUT ST., NORTH ANDOVER MA 01845
Munish Nanda	officer: President, Americas	1133 WESTCHESTER AVENUE, C/O ITT CORPORATION, WHITE PLAINS NY 10604
Michael J. Dubose	director	WATTS WATER TECHNOLOGIES INC., 815 CHESTNUT ST., NORTH ANDOVER MA 01845
Louise K Goeser	director	C/O PPL CORPORATION, TWO NORTH NINTH STREET, ALLENTOWN PA 18101
Todd A Trapp	officer: Chief Financial Officer	C/O WATTS WATER TECHNOLOGIES, INC., 815 CHESTNUT STREET, NORTH ANDOVER MA 01845
David A. Dunbar	director	11 KEEWAYDIN DRIVE, SUITE 300, SALEM NH 03079
Jes Munk Hansen	director	815 CHESTNUT STREET, NORTH ANDOVER MA 01845
Jennifer Congdon	officer: Chief HR Officer	WATTS WATER TECHNOLOGIES, INC., 815 CHESTNUT STREET, NORTH ANDOVER MA 01845