Watsco Inc (WSO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 536,286 | 536,337 | 601,167 | 418,945 | 269,579 |
| Total assets | US$ in thousands | 4,479,520 | 3,729,180 | 3,488,210 | 3,085,860 | 2,496,920 |
| ROA | 11.97% | 14.38% | 17.23% | 13.58% | 10.80% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $536,286K ÷ $4,479,520K
= 11.97%
Based on the provided data, Watsco Inc's return on assets (ROA) has shown fluctuating but generally positive trends over the years. The ROA increased from 10.80% as of December 31, 2020, to 13.58% as of December 31, 2021, reflecting an improvement in the company's efficiency in generating profits relative to its assets.
Subsequently, the ROA further increased to 17.23% by December 31, 2022, indicating a significant boost in the company's asset utilization and profitability ratio. However, the ROA dipped to 14.38% by December 31, 2023, suggesting a slight decline in the company's ability to generate earnings from its assets efficiently.
By December 31, 2024, the ROA decreased to 11.97%, indicating a further reduction in the company's profitability relative to its assets compared to the previous year. Overall, Watsco Inc's ROA performance has shown fluctuations, with periods of improvement and decline, highlighting the importance of closely monitoring the company's asset management and profitability strategies to maintain stable financial performance.