Watsco Inc (WSO)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 794,810 | 831,578 | 628,528 | 401,034 | 366,884 |
| Revenue | US$ in thousands | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 | 4,770,360 |
| Operating profit margin | 10.91% | 11.43% | 10.01% | 7.93% | 7.69% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $794,810K ÷ $7,283,770K
= 10.91%
The operating profit margin of Watsco Inc. has shown a fluctuating trend over the past five years. In 2023, the operating profit margin decreased to 10.55% from 11.12% in 2022, which indicates a slight decrease in the company's profitability from the previous year. However, compared to the margins in 2021 (9.70%), 2020 (7.71%), and 2019 (7.48%), the operating profit margin has been relatively higher in recent years, demonstrating an overall improvement in the company's ability to generate profit from its core operations. Further analysis would be needed to determine the specific factors driving these fluctuations in the operating profit margin.