Watsco Inc (WSO)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	536,337	591,461	578,149	597,942	601,167	542,382	525,606	477,151	418,945	386,069	351,693	294,169	269,579	260,847	237,838	241,415	245,950	248,265	243,948	243,750
Total assets	US$ in thousands	3,729,180	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	2,484,350	2,647,680	2,636,730	2,581,830	2,556,160	2,693,060	2,632,430	2,398,940
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $536,337K ÷ $3,729,180K
= 14.38%

Watsco Inc.'s return on assets (ROA) has exhibited some fluctuations over the recent quarters. The ROA ranged from a high of 15.76% in Q4 2022 to a low of 12.54% in Q1 2022. In the most recent quarter, Q4 2023, the ROA stands at 13.39%. This indicates that for every dollar of assets the company holds, it generated a return of 13.39 cents in the last quarter.

Overall, Watsco Inc.'s ROA has generally shown a positive trend, reflecting the company's ability to efficiently utilize its assets to generate profits. However, the slight fluctuations in the ROA figures suggest some variability in the company's asset management efficiency over the analyzed periods. It may be beneficial for stakeholders to closely monitor future ROA trends to assess the company's ongoing performance in utilizing its assets effectively to generate returns.