Watsco Inc (WSO)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 536,337 | 591,461 | 578,149 | 597,942 | 601,167 | 542,382 | 525,606 | 477,151 | 418,945 | 386,069 | 351,693 | 294,169 | 269,579 | 260,847 | 237,838 | 241,415 | 245,950 | 248,265 | 243,948 | 243,750 |
| 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 |
| Net profit margin | 7.36% | 8.14% | 8.06% | 8.19% | 8.26% | 7.53% | 7.56% | 7.16% | 6.67% | 6.52% | 6.19% | 5.68% | 5.33% | 5.25% | 4.92% | 4.98% | 5.16% | 5.29% | 5.31% | 5.36% |
December 31, 2023 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $536,337K ÷ $7,283,760K
= 7.36%
The net profit margin of Watsco Inc. has been relatively stable over the past eight quarters, ranging from 6.47% to 7.59%. The company's net profit margin peaked at 7.59% in Q3 2023 and hit a low of 6.47% in Q2 2022. Despite some fluctuations, the net profit margin has generally remained above 6.5% throughout the periods under review.
This consistent performance indicates that Watsco Inc. has been able to effectively manage its expenses relative to its revenue generation. A higher net profit margin suggests that the company is efficient in converting its revenue into profit after accounting for all expenses. It is essential for investors to monitor this metric as any significant changes in the net profit margin can indicate shifts in the company's profitability and efficiency in cost management.