Watsco Inc (WSO)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,618,320 | 7,467,560 | 7,434,360 | 7,298,110 | 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 |
| Total assets | US$ in thousands | 4,479,520 | 4,517,480 | 4,395,320 | 4,357,120 | 3,779,720 | 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 | 2,496,920 | 2,647,680 | 2,636,730 | 2,581,830 |
| Total asset turnover | 1.70 | 1.65 | 1.69 | 1.67 | 1.93 | 1.80 | 1.75 | 1.92 | 2.09 | 2.01 | 1.83 | 1.92 | 2.04 | 1.92 | 1.81 | 1.93 | 2.02 | 1.88 | 1.83 | 1.88 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,618,320K ÷ $4,479,520K
= 1.70
Total asset turnover measures a company's efficiency in generating sales from its assets. For Watsco Inc, the total asset turnover ratio has fluctuated over the years, ranging from a low of 1.67 to a high of 2.09.
The overall trend shows that Watsco Inc has generally been effective in utilizing its assets to generate revenue. The ratio peaked at 2.09 on December 31, 2022, indicating that the company was able to generate $2.09 in sales for every $1 of assets it owned at that time.
However, there have been periods where the ratio dipped, such as on March 31, 2024, where the ratio fell to 1.67, suggesting a decrease in asset efficiency in generating sales.
Overall, Watsco Inc's total asset turnover ratio has shown variability, but the company appears to have maintained a reasonable level of efficiency in utilizing its assets to drive revenue over the observed period.