WTW Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Willis Towers Watson PLC - Alpha Spread
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Willis Towers Watson PLC
NASDAQ:WTW

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Willis Towers Watson PLC
NASDAQ:WTW
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Price: 288.35 USD -0.16% Market Closed
Market Cap: 29.5B USD
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Profitability Summary

55/100
Profitability
Score

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Willis Towers Watson PLC

Revenue
9.7B USD
Operating Expenses
-7.7B USD
Operating Income
2B USD
Other Expenses
-873m USD
Net Income
1.1B USD

Margins Comparison
Willis Towers Watson PLC Competitors

Country Company Market Cap Operating
Margin
Net
Margin
UK
Willis Towers Watson PLC
NASDAQ:WTW
29.3B USD
20%
11%
US
Marsh & McLennan Companies Inc
NYSE:MMC
110B USD
25%
17%
IE
Aon PLC
NYSE:AON
75.4B USD
28%
18%
US
Arthur J Gallagher & Co
NYSE:AJG
60.5B USD
19%
10%
US
Arthur J. Gallagher & Co.
SWB:GAH
34.4B EUR
19%
10%
US
Brown & Brown Inc
NYSE:BRO
28.8B USD
30%
22%
US
Ryan Specialty Group Holdings Inc
NYSE:RYAN
16.5B USD
24%
3%
IN
PB Fintech Ltd
NSE:POLICYBZR
866.4B INR
-6%
4%
US
BRP Group Inc
NASDAQ:BWIN
5.7B USD
2%
-4%
AU
Steadfast Group Ltd
ASX:SDF
6.3B AUD
25%
14%
US
Hagerty Inc
NYSE:HGTY
3.6B USD
6%
2%
Country UK
Market Cap 29.3B USD
Operating Margin
20%
Net Margin
11%
Country US
Market Cap 110B USD
Operating Margin
25%
Net Margin
17%
Country IE
Market Cap 75.4B USD
Operating Margin
28%
Net Margin
18%
Country US
Market Cap 60.5B USD
Operating Margin
19%
Net Margin
10%
Country US
Market Cap 34.4B EUR
Operating Margin
19%
Net Margin
10%
Country US
Market Cap 28.8B USD
Operating Margin
30%
Net Margin
22%
Country US
Market Cap 16.5B USD
Operating Margin
24%
Net Margin
3%
Country IN
Market Cap 866.4B INR
Operating Margin
-6%
Net Margin
4%
Country US
Market Cap 5.7B USD
Operating Margin
2%
Net Margin
-4%
Country AU
Market Cap 6.3B AUD
Operating Margin
25%
Net Margin
14%
Country US
Market Cap 3.6B USD
Operating Margin
6%
Net Margin
2%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Willis Towers Watson PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
Willis Towers Watson PLC
NASDAQ:WTW
29.3B USD
11%
4%
12%
6%
US
Marsh & McLennan Companies Inc
NYSE:MMC
110B USD
32%
8%
21%
12%
IE
Aon PLC
NYSE:AON
75.4B USD
86%
6%
19%
9%
US
Arthur J Gallagher & Co
NYSE:AJG
60.5B USD
10%
2%
10%
3%
US
Arthur J. Gallagher & Co.
SWB:GAH
34.4B EUR
10%
2%
10%
3%
US
Brown & Brown Inc
NYSE:BRO
28.8B USD
18%
7%
13%
7%
US
Ryan Specialty Group Holdings Inc
NYSE:RYAN
16.5B USD
13%
1%
15%
6%
IN
PB Fintech Ltd
NSE:POLICYBZR
866.4B INR
2%
2%
-4%
-9%
US
BRP Group Inc
NASDAQ:BWIN
5.7B USD
-8%
-1%
1%
1%
AU
Steadfast Group Ltd
ASX:SDF
6.3B AUD
10%
4%
11%
8%
US
Hagerty Inc
NYSE:HGTY
3.6B USD
13%
1%
5%
4%
Country UK
Market Cap 29.3B USD
ROE
11%
ROA
4%
ROCE
12%
ROIC
6%
Country US
Market Cap 110B USD
ROE
32%
ROA
8%
ROCE
21%
ROIC
12%
Country IE
Market Cap 75.4B USD
ROE
86%
ROA
6%
ROCE
19%
ROIC
9%
Country US
Market Cap 60.5B USD
ROE
10%
ROA
2%
ROCE
10%
ROIC
3%
Country US
Market Cap 34.4B EUR
ROE
10%
ROA
2%
ROCE
10%
ROIC
3%
Country US
Market Cap 28.8B USD
ROE
18%
ROA
7%
ROCE
13%
ROIC
7%
Country US
Market Cap 16.5B USD
ROE
13%
ROA
1%
ROCE
15%
ROIC
6%
Country IN
Market Cap 866.4B INR
ROE
2%
ROA
2%
ROCE
-4%
ROIC
-9%
Country US
Market Cap 5.7B USD
ROE
-8%
ROA
-1%
ROCE
1%
ROIC
1%
Country AU
Market Cap 6.3B AUD
ROE
10%
ROA
4%
ROCE
11%
ROIC
8%
Country US
Market Cap 3.6B USD
ROE
13%
ROA
1%
ROCE
5%
ROIC
4%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

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