Watsco Inc (WSO)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 536,286 | 521,992 | 521,914 | 513,268 | 536,337 | 591,461 | 563,762 | 565,955 | 558,869 | 500,084 | 485,105 | 441,471 | 387,522 | 350,684 | 319,752 | 267,568 | 243,799 | 235,943 | 215,107 | 218,611 |
| Total assets | US$ in thousands | 4,479,520 | 4,517,480 | 4,395,320 | 4,357,120 | 3,779,720 | 4,039,070 | 4,103,010 | 3,800,610 | 3,488,210 | 3,584,590 | 3,788,590 | 3,473,890 | 3,085,860 | 3,090,920 | 3,131,680 | 2,692,260 | 2,496,920 | 2,647,680 | 2,636,730 | 2,581,830 |
| ROA | 11.97% | 11.55% | 11.87% | 11.78% | 14.19% | 14.64% | 13.74% | 14.89% | 16.02% | 13.95% | 12.80% | 12.71% | 12.56% | 11.35% | 10.21% | 9.94% | 9.76% | 8.91% | 8.16% | 8.47% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $536,286K ÷ $4,479,520K
= 11.97%
Watsco Inc's Return on Assets (ROA) has shown a generally positive trend over the given period from March 31, 2020, to December 31, 2024. The ROA increased from 8.47% in March 2020 to 11.97% in December 2024, with fluctuations along the way. The ROA peaked at 16.02% in December 2022 and experienced a slight decline in the following periods.
The increasing trend in ROA suggests that Watsco Inc has been effectively utilizing its assets to generate profits. A higher ROA indicates that the company is more efficient in using its assets to generate earnings. This improvement in ROA could be attributed to various factors such as effective cost management, increased profitability, or better asset utilization.
It is important to note that ROA should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of Watsco Inc's financial performance and efficiency in generating profits relative to its asset base.