Watsco Inc (WSO)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 794,810 | 824,241 | 803,877 | 825,269 | 831,578 | 817,465 | 788,011 | 717,697 | 628,528 | 575,223 | 525,205 | 437,671 | 401,034 | 383,306 | 351,844 | 356,995 | 366,884 | 373,353 | 370,331 | 373,277 |
| 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 |
| Operating profit margin | 10.91% | 11.35% | 11.21% | 11.30% | 11.43% | 11.35% | 11.34% | 10.76% | 10.01% | 9.71% | 9.25% | 8.44% | 7.93% | 7.71% | 7.28% | 7.36% | 7.69% | 7.96% | 8.07% | 8.20% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $794,810K ÷ $7,283,760K
= 10.91%
The operating profit margin of Watsco Inc. has shown relative stability over the past eight quarters, ranging from 10.48% to 11.12%. The margins in 2022 were consistently above 11%, indicating strong operational efficiency and profitability during that period. However, in 2023, the margins have slightly declined, hovering around the 11% mark. Despite this slight decrease, Watsco Inc. has maintained a healthy operating profit margin above 10%, suggesting effective cost management and revenue generation capabilities. Continuous monitoring and analysis of factors impacting profitability will be crucial to sustain and potentially improve the operating profit margin in the future.