Watsco Inc (WSO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 15,400 | 0 | 89,000 | 0 | 157,709 |
| Total assets | US$ in thousands | 3,729,180 | 3,488,210 | 3,085,860 | 2,484,350 | 2,556,160 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.03 | 0.00 | 0.06 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $15,400K ÷ $3,729,180K
= 0.00
The debt-to-assets ratio of Watsco Inc. has shown fluctuations over the past five years. As of December 31, 2023, the ratio is 0.03, indicating that only 3% of the company's assets are financed by debt. This represents a decrease from the previous year's ratio of 0.05. In 2022, the ratio was at 0.05, suggesting that 5% of assets were funded by debt.
Looking further back, in 2021, the ratio was slightly higher at 0.06, while in 2020, it was back down to 0.03. The highest debt-to-assets ratio in the given period was in 2019, at 0.09, indicating that 9% of assets were financed by debt.
Overall, Watsco Inc. has maintained relatively low levels of debt compared to its total assets, with the ratio fluctuating over the years. The downward trend in more recent years could suggest that the company is relying less on debt financing to support its operations and growth.