Watsco Inc (WSO)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,656,990 | 2,229,840 | 1,889,240 | 1,664,950 | 1,486,680 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,656,990K)
= 0.00
The debt-to-capital ratio for Watsco Inc has remained consistently at 0.00 from December 31, 2020, to December 31, 2024. This indicates that Watsco Inc has been financing its operations primarily through equity rather than debt during this period. A debt-to-capital ratio of 0.00 implies that the company has no debt in its capital structure and is not relying on borrowing to fund its operations or expansions. This can be viewed positively by investors and creditors as it signifies a lower financial risk and potentially greater financial stability. However, it is essential to consider other financial metrics and factors when evaluating a company's overall financial health and performance.