Watts Water Technologies (Watts Water Technologies) EBIT : $358 Mil (TTM As of Dec. 2023)

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What is Watts Water Technologies EBIT?

Watts Water Technologies's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $81 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $358 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Watts Water Technologies's annualized ROC % for the quarter that ended in Dec. 2023 was 15.45%. Watts Water Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 62.03%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Watts Water Technologies's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 5.36%.

Watts Water Technologies EBIT Historical Data

The historical data trend for Watts Water Technologies's EBIT 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 EBIT Chart

Watts Water Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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198.00

180.30

240.40

314.60

357.70

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
EBIT	Get a 7-Day Free Trial															66.70	85.00	102.30	89.30	81.10

Competitive Comparison of Watts Water Technologies's EBIT

For the Specialty Industrial Machinery subindustry, Watts Water Technologies's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Industrial Products Industry

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

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

Watts Water Technologies EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $358 Mil.

Watts Water Technologies (NYSE:WTS) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Watts Water Technologies's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	330 * ( 1 - 27.94% )	/	( (1352.9	+	1725.1)	/ 2 )
=	237.798	/	1539
=	15.45 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2017.6	-	302	-	( 362.7	-	max(0, 380.3	-	1041.6	+	362.7	))
=	1352.9

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2309.4	-	234.2	-	( 350.1	-	max(0, 405.8	-	1061	+	350.1	))
=	1725.1

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Watts Water Technologies's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	324.4	/	( ( (194 + max(298.6, 0))	+	(248.2 + max(305.1, 0)) )	/	2 )
=	324.4	/	( ( 492.6	+	553.3 )	/	2 )
=	324.4	/	522.95
=	62.03 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(257.6	+	386.4	+	34.9)	-	(302	+	0	+	78.3)
=	298.6

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(259.8	+	399.3	+	51.8)	-	(234.2	+	0	+	171.6)
=	305.1

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Watts Water Technologies's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	357.7	/	6673.866
	=	5.36 %

Watts Water Technologies EBIT 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 » EBIT

Comparable Companies

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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