Watsco Inc (WSO)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 802,644 | 789,890 | 829,413 | 627,532 | 399,795 |
| Revenue | US$ in thousands | 7,618,320 | 7,283,770 | 7,274,340 | 6,280,190 | 5,054,930 |
| Pretax margin | 10.54% | 10.84% | 11.40% | 9.99% | 7.91% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $802,644K ÷ $7,618,320K
= 10.54%
The pretax margin of Watsco Inc has exhibited a positive trend over the years, increasing from 7.91% in December 2020 to 10.54% in December 2024. The company's pretax margin experienced fluctuations during this period, reaching its peak at 11.40% in December 2022. Despite a slight decline in 2023, the pretax margin remained strong, reflecting Watsco's ability to effectively manage its operating expenses and generate profits before taxes. This upward trajectory suggests that Watsco has been improving its operational efficiency and profitability over the years.