Watsco Inc (WSO)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 15,400 | 105,600 | 342,900 | 197,600 | 0 | 8,800 | 203,600 | 262,500 | 89,000 | 1,724 | 114,167 | 48,900 | 0 | 668 | 33,357 | 156,143 | 157,709 | 171,163 | 221,312 | 139,249 |
| 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 |
| Debt-to-assets ratio | 0.00 | 0.03 | 0.08 | 0.05 | 0.00 | 0.00 | 0.05 | 0.08 | 0.03 | 0.00 | 0.04 | 0.02 | 0.00 | 0.00 | 0.01 | 0.06 | 0.06 | 0.06 | 0.08 | 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 fluctuated over the past eight quarters, ranging from a low of 0.03 in Q4 2022 to a high of 0.11 in Q2 2023. A low ratio indicates that the company's debt level is relatively low compared to its total assets, suggesting a lower financial risk. Conversely, a high ratio suggests that a larger portion of the company's assets is financed by debt, increasing the financial risk.
The ratio peaked in Q2 2023 at 0.11, indicating a significant increase in the level of debt compared to assets during that quarter. However, in Q3 2023, the ratio decreased to 0.05, which may indicate a reduction in debt relative to assets. This improvement in Q3 2023 compared to the previous quarter suggests a more favorable position in terms of leveraging debt to finance assets.
Overall, it is important for investors and stakeholders to monitor the trend of the debt-to-assets ratio to assess the company's ability to meet its financial obligations and manage its leverage effectively.