Watts Water Technologies (Watts Water Technologies) Inventory Turnover

: 0.74 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Watts Water Technologies's Cost of Goods Sold for the three months ended in Dec. 2023 was $292 Mil. Watts Water Technologies's Average Total Inventories for the quarter that ended in Dec. 2023 was $393 Mil. Watts Water Technologies's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.74.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Watts Water Technologies's Days Inventory for the three months ended in Dec. 2023 was 122.81.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Watts Water Technologies's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.72.

Watts Water Technologies Inventory Turnover Historical Data

The historical data trend for Watts Water Technologies's Inventory Turnover 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.

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Watts Water Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

3.31

3.29

2.96

2.83

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
Inventory Turnover																0.71	0.65	0.68	0.67	0.74

Watts Water Technologies Inventory Turnover Calculation

Watts Water Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1095.4	/ (	(375.6	+	399.3)	/	2 )
=	1095.4	/	387.45
=	2.83

Watts Water Technologies's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	291.9	/ (	(386.4	+	399.3)	/	2 )
=	291.9	/	392.85
=	0.74

Watts Water Technologies (NYSE:WTS) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Watts Water Technologies's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	392.85	/	291.9	*	365 / 4
	=	122.81

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Watts Water Technologies's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	392.85	/	547.5
	=	0.72

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Watts Water Technologies Inventory Turnover Related Terms

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Watts Water Technologies (Watts Water Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Watts Water Technologies Inc (NYSE:WTS) » Definitions » Inventory Turnover

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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