Watsco Inc (WSO)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 536,286 | 536,337 | 601,167 | 418,945 | 269,579 |
| Revenue | US$ in thousands | 7,618,320 | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 |
| Net profit margin | 7.04% | 7.36% | 8.26% | 6.67% | 5.33% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $536,286K ÷ $7,618,320K
= 7.04%
The net profit margin of Watsco Inc has shown a positive trend over the past five years. Beginning at 5.33% on December 31, 2020, it improved to 6.67% in 2021, and continued to increase to 8.26% in 2022, demonstrating the company's ability to effectively control costs and generate profit from its operations. However, there was a slight decrease in the net profit margin to 7.36% in 2023 and a further decline to 7.04% in 2024. These decreases may indicate that the company's profitability was impacted by factors such as changes in revenue, expenses, or operating efficiency during those years. Overall, Watsco Inc has maintained a relatively healthy level of net profit margin, showcasing its ability to efficiently convert revenue into profit across the years analyzed.