Watsco Inc (WSO)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,079,980 | 3,132,990 | 3,034,400 | 2,998,370 | 2,391,930 | 2,730,570 | 2,882,570 | 2,597,820 | 2,298,740 | 2,409,880 | 2,623,930 | 2,320,130 | 1,961,400 | 1,980,860 | 2,022,060 | 1,695,360 | 1,497,020 | 1,644,120 | 1,631,470 | 1,590,380 |
| Total current liabilities | US$ in thousands | 983,901 | 933,149 | 945,167 | 1,026,130 | 712,012 | 887,628 | 955,999 | 953,083 | 906,522 | 939,522 | 1,061,340 | 836,839 | 726,722 | 796,693 | 815,264 | 630,820 | 499,715 | 609,498 | 638,858 | 520,474 |
| Current ratio | 3.13 | 3.36 | 3.21 | 2.92 | 3.36 | 3.08 | 3.02 | 2.73 | 2.54 | 2.57 | 2.47 | 2.77 | 2.70 | 2.49 | 2.48 | 2.69 | 3.00 | 2.70 | 2.55 | 3.06 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,079,980K ÷ $983,901K
= 3.13
The current ratio of Watsco Inc has shown some fluctuations over the past few years. As of December 31, 2024, the company's current ratio stands at 3.13, indicating that for every dollar of current liabilities, the company has $3.13 in current assets. This suggests that Watsco Inc has a healthy liquidity position and is capable of meeting its short-term obligations comfortably.
Looking at the trend, we observed that the current ratio peaked at 3.36 as of September 30, 2023, before experiencing a slight decline in the following periods. Despite some fluctuations, the company's current ratio has generally been well above 2, indicating a strong ability to cover its short-term liabilities with current assets.
It is important to note that while a high current ratio generally signifies good liquidity, an excessively high ratio may suggest that the company is not efficiently utilizing its current assets. Conversely, a low current ratio could indicate potential liquidity issues. Overall, based on the current ratio trend of Watsco Inc, the company appears to be managing its short-term liquidity effectively.