Watsco Inc (WSO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,479,520 | 2,696,380 | 2,610,840 | 2,526,420 | 2,229,840 | 2,224,010 | 2,037,650 | 1,928,870 | 1,889,240 | 1,908,780 | 1,834,440 | 1,725,210 | 1,664,950 | 1,644,580 | 1,575,700 | 1,491,410 | 1,486,680 | 1,489,610 | 1,437,040 | 1,404,340 |
| ROE | 11.97% | 19.36% | 19.99% | 20.32% | 24.05% | 26.59% | 27.67% | 29.34% | 29.58% | 26.20% | 26.44% | 25.59% | 23.28% | 21.32% | 20.29% | 17.94% | 16.40% | 15.84% | 14.97% | 15.57% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $536,286K ÷ $4,479,520K
= 11.97%
Watsco Inc's return on equity (ROE) has shown a generally increasing trend from 15.57% in March 2020 to a peak of 29.58% in December 2022. This indicates that the company has been effectively utilizing its equity to generate profits for shareholders. However, there was a significant decline in ROE to 11.97% by December 2024, which suggests a potential decrease in the company's profitability and efficiency in utilizing shareholder equity. It would be advisable for stakeholders to closely monitor Watsco Inc's financial performance and assess the reasons behind the decline in ROE to address any underlying issues and ensure sustainable long-term growth and profitability.