Watsco Inc (WSO)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,044,710 | 1,992,140 | 2,030,290 | 1,667,540 | 1,222,820 |
| Revenue | US$ in thousands | 7,618,320 | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 |
| Gross profit margin | 26.84% | 27.35% | 27.91% | 26.55% | 24.19% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,044,710K ÷ $7,618,320K
= 26.84%
Watsco Inc's gross profit margin has displayed a generally positive trend over the five-year period from 2020 to 2024. Starting at 24.19% in December 2020, the margin increased steadily to reach its peak at 27.91% by December 2022, reflecting improved efficiency in the company's cost of goods sold relative to its revenues.
However, there was a slight decline in the gross profit margin to 27.35% by the end of 2023, followed by a further decrease to 26.84% by December 2024. These decreases may indicate increased costs of production or pricing pressures impacting the company's profitability during those years.
Overall, while the gross profit margin of Watsco Inc experienced fluctuations in the later years of the period under review, the company maintained a healthy level of gross profit relative to its revenues, suggesting effective management of production costs and pricing strategies. Further analysis would be needed to understand the specific factors driving the changes in the gross profit margin during this period.