Watsco Inc (WSO)
Total 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 |
| Total assets | US$ in thousands | 3,729,180 | 4,039,070 | 4,103,010 | 3,800,610 | 3,488,210 | 3,584,590 | 3,788,590 | 3,473,890 | 3,085,860 | 3,090,920 | 3,131,680 | 2,692,260 | 2,484,350 | 2,647,680 | 2,636,730 | 2,581,830 | 2,556,160 | 2,693,060 | 2,632,430 | 2,398,940 |
| Total asset turnover | 1.95 | 1.80 | 1.75 | 1.92 | 2.09 | 2.01 | 1.83 | 1.92 | 2.04 | 1.92 | 1.81 | 1.93 | 2.03 | 1.88 | 1.83 | 1.88 | 1.87 | 1.74 | 1.74 | 1.90 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,283,760K ÷ $3,729,180K
= 1.95
Total asset turnover measures how efficiently a company is using its assets to generate revenue. A higher total asset turnover ratio generally indicates that the company is more efficient in generating sales from its assets.
Looking at the data for Watsco Inc., we can see fluctuations in the total asset turnover ratio over the past eight quarters. In Q4 2022, the company had a ratio of 2.09, indicating that it generated $2.09 in sales for every $1 of assets during that period, showing high efficiency in asset utilization.
However, in the subsequent quarters, the total asset turnover ratio declined, reaching a low of 1.75 in Q2 2023. This could suggest a decrease in efficiency in utilizing assets to generate revenue during that period.
In the most recent quarter, Q4 2023, the total asset turnover ratio increased to 1.95. While this is an improvement from the previous quarter, it is still below the peak ratio seen in Q4 2022.
Overall, Watsco Inc. has experienced fluctuations in its total asset turnover ratio, indicating varying levels of efficiency in asset utilization over the past eight quarters. It would be crucial for the company to monitor and potentially improve this ratio to enhance operational efficiency and profitability in the future.