Watsco Inc (WSO)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 802,644 | 768,491 | 766,198 | 754,772 | 789,890 | 818,307 | 799,350 | 823,047 | 829,413 | 815,075 | 785,883 | 716,231 | 627,532 | 574,408 | 524,503 | 437,134 | 399,795 | 381,515 | 348,727 | 352,949 |
| 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 |
| Pretax margin | 10.54% | 10.29% | 10.31% | 10.34% | 10.84% | 11.27% | 11.15% | 11.27% | 11.40% | 11.31% | 11.30% | 10.74% | 9.99% | 9.70% | 9.24% | 8.43% | 7.91% | 7.67% | 7.22% | 7.28% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $802,644K ÷ $7,618,320K
= 10.54%
The pretax margin of Watsco Inc has shown a generally positive trend over the past few years, indicating the company's ability to effectively manage its operating expenses relative to its revenue before accounting for taxes.
The pretax margin started at 7.28% in March 2020, and gradually increased to reach 11.40% by December 2022, reflecting improving operational efficiency and profitability. However, there was a slight decrease to 10.84% by March 2023, followed by fluctuations around the 11% mark for the next couple of quarters.
The pretax margin dipped to 10.29% by September 2024 but rebounded slightly to 10.54% by December 2024. Overall, Watsco Inc has maintained a pretax margin above 10% for the majority of the period, indicating healthy profitability levels. Continued monitoring of this metric will be essential to assess the company's ongoing financial health and operational efficiency.