Watsco Inc (WSO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 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 | 1,435,430 | 1,443,110 | 1,355,600 | 1,335,210 |
| Debt-to-capital ratio | 0.01 | 0.05 | 0.14 | 0.09 | 0.00 | 0.00 | 0.10 | 0.13 | 0.05 | 0.00 | 0.07 | 0.03 | 0.00 | 0.00 | 0.02 | 0.10 | 0.10 | 0.11 | 0.14 | 0.09 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,400K ÷ ($15,400K + $2,229,840K)
= 0.01
The debt-to-capital ratio of Watsco Inc. has experienced fluctuations over the past eight quarters. In Q4 2022 and Q1 2023, the company had relatively low debt-to-capital ratios of 0.05 and 0.14, respectively. This indicates that a smaller proportion of the company's capital structure was composed of debt during those periods.
Subsequently, the ratio increased to 0.18 in Q2 2023, signaling a higher reliance on debt to finance its operations. However, there was a slight decrease in Q3 2023, with the ratio at 0.09, suggesting a reduced level of debt relative to total capital compared to the preceding quarter.
The most recent data point in Q4 2023 shows a significant drop in the debt-to-capital ratio to 0.05, returning to a lower level similar to Q4 2022. This could indicate that Watsco Inc. has been managing its debt levels effectively or possibly utilizing other forms of financing.
Overall, the trend in Watsco Inc.'s debt-to-capital ratio demonstrates variability, with fluctuations indicating shifts in the company's capital structure and financing decisions over the analyzed period.