Watsco Inc (WSO)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,479,520 | 4,517,480 | 4,395,320 | 4,357,120 | 3,779,720 | 4,039,070 | 4,103,010 | 3,800,610 | 3,488,210 | 3,584,590 | 3,788,590 | 3,473,890 | 3,085,860 | 3,090,920 | 3,131,680 | 2,692,260 | 2,496,920 | 2,647,680 | 2,636,730 | 2,581,830 |
| Operating ROA | 17.11% | 16.21% | 16.81% | 17.11% | 20.88% | 20.41% | 19.59% | 21.71% | 23.22% | 22.20% | 20.23% | 20.04% | 20.37% | 18.61% | 16.77% | 16.26% | 16.06% | 14.48% | 13.34% | 13.83% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $766,647K ÷ $4,479,520K
= 17.11%
Watsco Inc's operating return on assets (operating ROA) has shown a positive trend over the analyzed period, starting at 13.83% on March 31, 2020, and gradually increasing to 17.11% by December 31, 2024. The operating ROA experienced fluctuations during this time frame, reaching a peak of 23.22% on December 31, 2022, and a low of 13.34% on June 30, 2020.
The operating ROA saw substantial growth in the later part of the period, notably from September 30, 2021, onwards, where it consistently increased to its peak in December 31, 2022. However, there was a subsequent decline in the operating ROA from the peak, with some volatility in the figures in the later quarters.
Overall, the upward trend in the operating ROA indicates that Watsco Inc has been effectively utilizing its assets to generate operating profits over the analyzed period, with some fluctuations along the way. It is essential to monitor these trends to assess the company's operational efficiency and profitability in the future.