Watsco Inc (WSO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 27.35% | 27.70% | 27.82% | 27.78% | 27.91% | 27.88% | 27.92% | 27.34% | 26.55% | 25.96% | 25.17% | 24.50% | 24.19% | 24.15% | 24.05% | 24.15% | 24.25% | 24.44% | 24.62% | 24.68% |
| 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% |
| 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% |
| Net profit margin | 7.36% | 8.14% | 8.06% | 8.19% | 8.26% | 7.53% | 7.56% | 7.16% | 6.67% | 6.52% | 6.19% | 5.68% | 5.33% | 5.25% | 4.92% | 4.98% | 5.16% | 5.29% | 5.31% | 5.36% |
Watsco Inc.'s profitability ratios have shown stable performance over the past eight quarters. The gross profit margin has ranged between 27.34% and 27.91%, indicating consistent profitability from sales after accounting for the cost of goods sold.
The operating profit margin has been relatively steady, fluctuating between 10.48% and 11.12%. This indicates that the company has been efficient in managing its operating expenses to generate operating profits.
Similarly, the pretax margin has ranged from 10.74% to 11.40% over the same period, showing that Watsco has been effective in managing its pre-tax income in relation to total revenue.
The net profit margin has demonstrated consistency, ranging between 6.53% and 7.59%. This ratio reflects Watsco's ability to generate net income relative to its total revenue, taking into account all expenses, including interest and taxes.
Overall, Watsco Inc. has maintained stable profitability ratios, indicating efficient cost management and strong operational performance over the past two years.
Return on investment
| 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 return on assets (Operating ROA) | 21.31% | 20.41% | 19.59% | 21.71% | 23.84% | 22.80% | 20.80% | 20.66% | 20.37% | 18.61% | 16.77% | 16.26% | 16.14% | 14.48% | 13.34% | 13.83% | 14.35% | 13.86% | 14.07% | 15.56% |
| Return on assets (ROA) | 14.38% | 14.64% | 14.09% | 15.73% | 17.23% | 15.13% | 13.87% | 13.74% | 13.58% | 12.49% | 11.23% | 10.93% | 10.85% | 9.85% | 9.02% | 9.35% | 9.62% | 9.22% | 9.27% | 10.16% |
| Return on total capital | 35.40% | 35.38% | 33.77% | 38.81% | 44.02% | 42.63% | 38.67% | 36.11% | 35.84% | 34.94% | 31.08% | 28.41% | 26.98% | 25.72% | 23.93% | 21.74% | 21.36% | 21.49% | 21.80% | 23.48% |
| Return on equity (ROE) | 24.05% | 26.59% | 28.37% | 31.00% | 31.82% | 28.42% | 28.65% | 27.66% | 25.16% | 23.48% | 22.32% | 19.72% | 18.13% | 17.51% | 16.55% | 17.19% | 17.13% | 17.20% | 18.00% | 18.26% |
Watsco Inc. has demonstrated consistent profitability over the quarters, as indicated by its profitability ratios. The company's Operating ROA has remained strong, ranging from 19.03% to 21.13% in the past four quarters. This ratio indicates that Watsco efficiently generates profits from its assets and operations.
The overall ROA of Watsco has also been healthy, varying from 13.05% to 14.46% during the same period. ROA reflects the company's ability to generate earnings from its total assets, encompassing both operational and non-operational activities.
Moreover, Watsco's return on total capital has also been impressive, with variations from 32.33% to 37.02%. This ratio indicates the company's effectiveness in generating returns from both equity and debt sources of capital.
Furthermore, the return on equity (ROE) for Watsco has generally been robust, fluctuating between 22.40% and 28.49% over the past eight quarters. ROE highlights the company's ability to create value for its shareholders from the equity invested in the business.
Overall, Watsco's profitability ratios suggest a sound financial performance and efficient utilization of its assets and capital to generate returns for its stakeholders.