Watsco Inc (WSO)
Operating profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 766,647 | 732,414 | 738,784 | 745,501 | 789,017 | 824,241 | 803,877 | 825,269 | 809,986 | 795,873 | 766,419 | 696,105 | 628,528 | 575,223 | 525,205 | 437,671 | 401,034 | 383,306 | 351,844 | 356,995 |
| Revenue (ttm) | US$ in thousands | 7,618,320 | 7,467,560 | 7,434,360 | 7,298,110 | 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 |
| Operating profit margin | 10.06% | 9.81% | 9.94% | 10.21% | 10.83% | 11.35% | 11.21% | 11.30% | 11.13% | 11.05% | 11.02% | 10.44% | 10.01% | 9.71% | 9.25% | 8.44% | 7.93% | 7.71% | 7.28% | 7.36% |
December 31, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $766,647K ÷ $7,618,320K
= 10.06%
The operating profit margin of Watsco Inc has shown a general increasing trend over the past few years, indicating improving efficiency in generating profits from its core operations. From March 31, 2020, to December 31, 2024, the operating profit margin has ranged from 7.36% to 11.35%.
The company experienced a steady increase in its operating profit margin from around 7% in 2020 to above 11% in September 2023. However, there was a slight decline in the margin in the subsequent quarters, with a dip to 9.94% by June 30, 2024.
It is important to note that while the operating profit margin fluctuated during the period under review, the company maintained a relatively healthy margin above 9% for most quarters. This indicates that Watsco Inc has been effectively managing its operating expenses relative to its revenue, resulting in a solid profitability performance.
Overall, the operating profit margin analysis suggests that Watsco Inc has been successful in maximizing its operating efficiency and profitability in the given timeframe, although the company experienced a minor setback in the most recent quarter.