Watsco Inc (WSO)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	1,992,140	2,011,274	1,995,177	2,028,088	2,030,289	2,008,858	1,940,674	1,823,082	1,667,545	1,537,670	1,428,769	1,270,027	1,222,821	1,201,098	1,162,026	1,170,811	1,156,956	1,146,079	1,130,397	1,123,179
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
Gross profit margin		27.35%	27.70%	27.82%	27.78%	27.91%	27.88%	27.92%	27.34%	26.55%	25.96%	25.17%	24.50%	24.19%	24.15%	24.05%	24.15%	24.25%	24.44%	24.62%	24.68%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,992,140K ÷ $7,283,760K
= 27.35%

The gross profit margin of Watsco Inc. has been relatively stable over the past eight quarters, ranging from 27.34% to 27.92%. In the most recent quarter, Q4 2023, the gross profit margin was 27.35%, slightly lower than the prior quarter but within the historical range. This indicates that Watsco Inc. has been able to maintain strong control over its cost of goods sold relative to its revenue. However, the slight decrease in gross profit margin in Q4 2023 may suggest potential challenges in managing production costs or pricing strategies that could impact profitability. Overall, Watsco Inc. has demonstrated consistency in maintaining a healthy gross profit margin, which is a positive indicator of its operational efficiency and pricing power.