Watsco Inc (WSO)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 536,337 | 601,167 | 418,945 | 269,579 | 245,950 |
| Revenue | US$ in thousands | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 | 4,770,360 |
| Net profit margin | 7.36% | 8.26% | 6.67% | 5.33% | 5.16% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $536,337K ÷ $7,283,770K
= 7.36%
The net profit margin of Watsco Inc. has shown fluctuation over the past five years. In 2023, the net profit margin decreased to 6.86% from 7.56% in 2022, indicating a slight decline in profitability. However, compared to 2021 and 2020, the net profit margin has shown improvement. This suggests that in 2023, the company was able to retain a higher percentage of revenue as net profit compared to the two preceding years. Overall, the trend in net profit margin for Watsco Inc. shows variability but with an overall positive improvement in recent years.