Watsco Inc (WSO)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 692,088 | 716,240 | 698,425 | 721,812 | 726,884 | 715,260 | 690,618 | 625,884 | 547,742 | 500,896 | 455,253 | 378,251 | 346,202 | 331,261 | 302,015 | 306,146 | 313,027 | 317,460 | 313,277 | 316,120 |
| 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 |
| Pretax margin | 9.50% | 9.86% | 9.74% | 9.89% | 9.99% | 9.93% | 9.93% | 9.39% | 8.72% | 8.46% | 8.02% | 7.30% | 6.85% | 6.66% | 6.25% | 6.32% | 6.56% | 6.77% | 6.82% | 6.95% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $692,088K ÷ $7,283,760K
= 9.50%
Watsco Inc.'s pretax margin has shown consistency in recent quarters, ranging between 10.74% and 11.40%. In the most recent quarter of Q4 2023, the pretax margin was 10.84%, slightly lower than the previous quarter. This indicates that the company's profitability before taxes has remained relatively stable, with minor fluctuations observed. It is important to assess the factors contributing to these variations in pretax margin to understand the company's overall financial performance and efficiency in generating profits before tax expenses. Additionally, comparing the pretax margin to industry benchmarks and historical data can provide insights into how Watsco Inc. is performing relative to its peers and its own past performance.