Watsco Inc (WSO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 536,337 | 601,167 | 418,945 | 269,579 | 245,950 |
| Total assets | US$ in thousands | 3,729,180 | 3,488,210 | 3,085,860 | 2,484,350 | 2,556,160 |
| ROA | 14.38% | 17.23% | 13.58% | 10.85% | 9.62% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $536,337K ÷ $3,729,180K
= 14.38%
Watsco Inc.'s return on assets (ROA) has shown a positive trend over the past five years, indicating increasing efficiency in generating profits from its assets. The ROA increased from 8.82% in 2019 to 13.39% in 2023, with fluctuations in between. This suggests that the company has been utilizing its assets more effectively over the years to generate profits.
The highest ROA was recorded in 2022 at 15.76%, indicating a peak in asset utilization efficiency during that year. Although there was a slight decrease in ROA in 2023 compared to the previous year, the company still maintained a strong performance in generating returns relative to its asset base. Overall, the trend in ROA reflects positively on Watsco Inc.'s ability to manage its assets efficiently and generate returns for its shareholders.