Watsco Inc (WSO)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	7,283,760	7,261,780	7,170,740	7,301,420	7,274,350	7,204,990	6,951,760	6,667,640	6,280,190	5,923,050	5,677,150	5,182,890	5,054,930	4,972,530	4,830,780	4,847,250	4,770,368	4,689,374	4,590,464	4,551,354
Property, plant and equipment	US$ in thousands	136,230	134,076	128,065	126,582	125,424	121,678	119,525	115,385	111,019	105,842	104,967	100,378	98,225	97,660	97,143	97,443	98,523	97,926	95,586	93,176
Fixed asset turnover		53.47	54.16	55.99	57.68	58.00	59.21	58.16	57.79	56.57	55.96	54.09	51.63	51.46	50.92	49.73	49.74	48.42	47.89	48.02	48.85

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,283,760K ÷ $136,230K
= 53.47

Fixed asset turnover is a key financial ratio that measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio typically indicates better efficiency in utilizing fixed assets to generate sales.

In the case of Watsco Inc., the fixed asset turnover ratio has been consistently high over the past eight quarters, ranging from 53.47 to 59.21. This trend indicates that Watsco is efficiently utilizing its fixed assets to generate sales revenue. The slight fluctuations in the ratio are normal and may be influenced by seasonality or specific business factors.

Overall, Watsco Inc. has been effectively managing its fixed assets to drive revenue growth, as evidenced by the consistently high fixed asset turnover ratios. This indicates the company's ability to efficiently use its capital investments in fixed assets to generate sales, which is a positive sign for investors and stakeholders.