Watsco Inc (WSO)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 781,775 | 771,424 | 831,578 | 628,528 | 401,034 |
| Revenue | US$ in thousands | 7,618,320 | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 |
| Operating profit margin | 10.26% | 10.59% | 11.43% | 10.01% | 7.93% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $781,775K ÷ $7,618,320K
= 10.26%
Watsco Inc's operating profit margin has shown a positive trend over the past five years, increasing from 7.93% in December 2020 to 10.26% in December 2024. This indicates that the company has been able to improve its efficiency in generating profits from its core business operations year on year. The peak operating profit margin of 11.43% in December 2022 highlights a particularly strong performance during that period. However, it is worth noting that there was a slight dip in 2023 to 10.59%, suggesting some fluctuations in profitability. Overall, Watsco Inc's consistent improvement in operating profit margin reflects effective cost management and revenue generation strategies, which have contributed to the company's financial performance.