Watsco Financials
Watsco (WSO) reported $7.2B in revenue for fiscal year 2025, down 5.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
A working-capital-heavy, low-capex model makes Watsco's cash generation steadier than sales when demand cools.
Between FY2024 and FY2025, revenue fell5.0% while gross margin widened to28.1% , so product-level economics held up better than demand. But SG&A absorption weakened as expense still climbed to$1.34B , which kept the margin gain from reaching operating profit and shows earnings rely heavily on volume covering a large overhead base.
FY2025 cash conversion stayed tight: operating cash flow of
FY2025 also ended with a more defensive balance sheet, as the current ratio reached 4.1x after current liabilities fell faster than current assets. Cash of
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Watsco's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Watsco has an operating margin of 10.0%, meaning the company retains $10 of operating profit per $100 of revenue. This strong profitability earns a score of 78/100, reflecting efficient cost management and pricing power. This is down from 10.3% the prior year.
Watsco's revenue declined 5.0% year-over-year, from $7.6B to $7.2B. This contraction results in a growth score of 30/100.
Watsco carries a low D/E ratio of 0.13, meaning only $0.13 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 4.12, Watsco holds $4.12 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 86/100.
Watsco has a free cash flow margin of 7.4%, earning a moderate score of 61/100. The company generates positive cash flow after capital investments, but with room for improvement.
Watsco earns a strong 21.1% return on equity (ROE), meaning it generates $21 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 89/100. This is down from 23.9% the prior year.
Watsco scores 7.97, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($13.0B) relative to total liabilities ($1.6B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Watsco passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Watsco generates $0.97 in operating cash flow ($569.6M OCF vs $587.6M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Watsco earns $41.57 in operating income for every $1 of interest expense ($720.3M vs $17.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Watsco generated $7.2B in revenue in fiscal year 2025. This represents a decrease of 5.0% from the prior year.
Watsco's EBITDA was $764.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 7.1% from the prior year.
Watsco reported $587.6M in net income in fiscal year 2025. This represents a decrease of 7.6% from the prior year.
Watsco earned $12.25 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 7.9% from the prior year.
Cash & Balance Sheet
Watsco generated $535.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 28.0% from the prior year.
Watsco held $433.3M in cash against $361.6M in long-term debt as of fiscal year 2025.
Watsco paid $11.70 per share in dividends in fiscal year 2025. This represents an increase of 10.9% from the prior year.
Margins & Returns
Watsco's gross margin was 28.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.2 percentage points from the prior year.
Watsco's operating margin was 10.0% in fiscal year 2025, reflecting core business profitability. This is down 0.3 percentage points from the prior year.
Watsco's net profit margin was 8.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 0.2 percentage points from the prior year.
Watsco's ROE was 21.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 2.8 percentage points from the prior year.
Capital Allocation
Watsco invested $34.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 14.8% from the prior year.
Not reported for fiscal year 2025.
Not reported for fiscal year 2025.
WSO Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.3B | $7.2B-5.0% | $7.6B+4.6% | $7.3B+0.1% | $7.3B+15.8% | $6.3B+24.2% | $5.1B+6.0% | $4.8B+4.9% | $4.5B+4.7% | $4.3B+2.9% | $4.2B+2.6% | $4.1B+4.3% | $3.9B+5.4% | $3.7B+9.1% | $3.4B+15.2% | $3.0B |
| Cost of Revenue | $5.3B | $5.2B-6.5% | $5.6B+5.3% | $5.3B+0.9% | $5.2B+13.7% | $4.6B+20.4% | $3.8B+6.1% | $3.6B+5.5% | $3.4B+4.6% | $3.3B+2.8% | $3.2B+2.6% | $3.1B+3.9% | $3.0B+5.1% | $2.8B+8.7% | $2.6B+16.4% | $2.2B |
| Gross Profit | $2.0B | $2.0B-0.7% | $2.0B+2.6% | $2.0B-1.9% | $2.0B+21.8% | $1.7B+36.4% | $1.2B+5.7% | $1.2B+3.3% | $1.1B+5.1% | $1.1B+3.0% | $1.0B+2.7% | $1.0B+5.3% | $956.4M+6.4% | $899.3M+10.4% | $814.4M+11.8% | $728.3M |
| SG&A Expenses | $1.3B | $1.3B+3.4% | $1.3B+5.7% | $1.2B+0.2% | $1.2B+15.4% | $1.1B+27.0% | $833.1M+4.1% | $800.3M+5.7% | $757.5M+5.8% | $715.7M+3.9% | $689.0M+2.7% | $670.6M+3.1% | $650.7M+3.6% | $628.0M+6.5% | $589.5M+11.4% | $529.2M |
| Operating Income | $684.8M | $720.3M-7.9% | $781.8M-1.6% | $794.8M-4.4% | $831.6M+32.3% | $628.5M+56.7% | $401.0M+9.3% | $366.9M-1.4% | $372.1M+5.1% | $353.9M+2.4% | $345.6M+2.6% | $336.7M+10.1% | $305.7M+12.7% | $271.2M+20.6% | $224.9M+13.0% | $199.1M |
| Interest Expense | $19.5M | $17.3M-17.0% | $20.9M+524.2% | -$4.9M-127.3% | -$2.2M-117.4% | -$996K+19.6% | -$1.2M+69.3% | -$4.0M-47.2% | -$2.7M+56.9% | -$6.4M-71.4% | -$3.7M-166.9% | $5.5M+6.6% | $5.2M-10.7% | $5.8M+25.0% | $4.7M+4.6% | $4.5M |
| Income Tax | $143.9M | $150.1M-10.1% | $166.9M+7.2% | $155.8M+23.9% | $125.7M-2.4% | $128.8M+68.1% | $76.6M+14.2% | $67.1M-7.9% | $72.8M-19.3% | $90.2M-14.8% | $105.9M+1.2% | $104.7M+14.0% | $91.8M+18.3% | $77.7M+24.0% | $62.6M+10.2% | $56.9M |
| Net Income | $566.3M | $587.6M-7.6% | $635.7M+0.3% | $634.1M-9.9% | $703.7M+41.1% | $498.7M+85.0% | $269.6M+9.6% | $245.9M+1.2% | $242.9M+16.7% | $208.2M+13.9% | $182.8M+5.7% | $172.9M+14.2% | $151.4M+18.5% | $127.7M+23.6% | $103.3M+14.2% | $90.5M |
| EPS (Diluted) | — | $12.25-7.9% | $13.30-2.7% | $13.67-11.3% | $15.41+42.9% | $10.78+53.8% | $7.01+7.8% | $6.50+0.2% | $6.49+11.7% | $5.81+12.8% | $5.15+5.1% | $4.90+13.4% | $4.32+17.4% | $3.68+36.3% | $2.70-1.5% | $2.74 |
Not reported in any period shown, so not listed: R&D Expenses.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
WSO Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.4B-1.4% | $4.5B+20.1% | $3.7B+6.9% | $3.5B+13.0% | $3.1B+24.2% | $2.5B-2.8% | $2.6B+18.3% | $2.2B+5.6% | $2.0B+9.2% | $1.9B+4.8% | $1.8B-0.1% | $1.8B+7.3% | $1.7B-0.7% | $1.7B+32.6% | $1.3B |
| Current Assets | $3.0B-4.1% | $3.1B+28.8% | $2.4B+4.1% | $2.3B+17.2% | $2.0B+32.1% | $1.5B-4.0% | $1.5B+7.3% | $1.4B+7.8% | $1.3B+7.8% | $1.2B+5.0% | $1.2B+2.1% | $1.2B+13.3% | $1.0B+0.6% | $1.0B+22.6% | $828.2M |
| Cash & Equivalents | $433.3M-17.7% | $526.3M+150.5% | $210.1M+42.4% | $147.5M+24.7% | $118.3M-19.0% | $146.1M+96.2% | $74.5M-10.2% | $82.9M+3.0% | $80.5M+43.7% | $56.0M+59.0% | $35.2M+44.1% | $24.4M+25.5% | $19.5M-73.6% | $73.8M+370.7% | $15.7M |
| Inventory | $1.4B+0.1% | $1.4B+2.8% | $1.3B-1.7% | $1.4B+22.8% | $1.1B+42.8% | $781.3M-15.1% | $920.8M+10.0% | $837.1M+10.0% | $761.3M+11.1% | $685.0M+1.6% | $674.0M-0.6% | $678.0M+16.3% | $583.2M+6.8% | $546.1M+17.3% | $465.3M |
| Accounts Receivable | $796.2M-9.3% | $877.9M+10.0% | $797.8M+6.8% | $747.1M+7.0% | $698.5M+30.5% | $535.3M+0.3% | $533.8M+6.4% | $501.9M+5.0% | $478.1M+0.5% | $476.0M+5.5% | $451.1M+3.9% | $434.2M+8.7% | $399.6M+5.8% | $377.7M+15.3% | $327.7M |
| Goodwill | $462.5M+2.4% | $451.9M-1.2% | $457.1M+6.1% | $430.7M-0.8% | $434.0M+5.2% | $412.5M0.0% | $412.5M+0.3% | $411.2M+7.4% | $382.7M+0.8% | $379.7M+0.4% | $378.3M-2.3% | $387.3M-1.3% | $392.6M-1.2% | $397.3M+24.4% | $319.4M |
| Total Liabilities | $1.6B-10.4% | $1.8B+21.6% | $1.5B-6.2% | $1.6B+12.5% | $1.4B+42.4% | $997.7M-11.0% | $1.1B+37.8% | $813.2M+8.6% | $748.9M-13.8% | $868.8M+4.5% | $831.1M-8.4% | $907.1M+9.4% | $829.1M-11.2% | $933.8M+100.7% | $465.4M |
| Current Liabilities | $717.7M-27.1% | $983.9M+38.2% | $712.0M-21.5% | $906.5M+24.7% | $726.7M+49.2% | $487.1M+5.5% | $461.7M+29.1% | $357.6M-14.1% | $416.5M+32.3% | $314.9M+16.5% | $270.3M-5.8% | $287.0M+17.9% | $243.5M-13.8% | $282.4M+26.6% | $223.0M |
| Long-Term Debt | $361.6M+7.2% | $337.2M+10.7% | $304.5M+25.0% | $243.5M-14.6% | $285.2M+97.6% | $144.3M-53.7% | $312.0M+129.8% | $135.8M+514.7% | $22.1M-90.6% | $235.6M-4.1% | $245.8M-19.1% | $303.9M+31.8% | $230.6M-27.1% | $316.2M | N/A |
| Total Equity | $2.8B+4.7% | $2.7B+19.2% | $2.2B+18.0% | $1.9B+13.5% | $1.7B+12.0% | $1.5B+3.6% | $1.4B+6.5% | $1.3B+3.8% | $1.3B+29.0% | $1.0B+5.1% | $957.3M+8.3% | $884.0M+5.2% | $840.4M+12.3% | $748.2M-6.8% | $802.8M |
| Retained Earnings | $1.3B+1.8% | $1.3B+9.5% | $1.2B+14.9% | $1.0B+35.3% | $760.8M+19.6% | $636.4M+0.6% | $632.5M+0.7% | $628.0M+5.6% | $594.6M+8.0% | $550.5M+11.1% | $495.3M+17.7% | $420.9M+24.0% | $339.4M+34.9% | $251.5M-37.8% | $404.4M |
WSO Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $733.3M | $569.6M-26.3% | $773.1M+37.6% | $562.0M-1.8% | $572.0M+63.6% | $349.6M-34.6% | $534.4M+59.1% | $335.8M+96.9% | $170.6M-44.4% | $306.5M+8.8% | $281.7M+26.4% | $222.8M+53.7% | $145.0M-3.5% | $150.3M-13.3% | $173.3M+182.1% | $61.5M |
| Capital Expenditures | $36.1M | $34.5M+14.8% | $30.1M-15.2% | $35.5M-0.5% | $35.7M+40.0% | $25.5M+54.9% | $16.4M-7.7% | $17.8M+3.8% | $17.2M-4.0% | $17.9M-59.0% | $43.6M+83.9% | $23.7M+10.2% | $21.5M+47.5% | $14.6M+18.4% | $12.3M-11.5% | $13.9M |
| Free Cash Flow | $697.1M | $535.1M-28.0% | $743.0M+41.1% | $526.5M-1.8% | $536.3M+65.5% | $324.1M-37.4% | $517.9M+62.9% | $318.0M+107.3% | $153.4M-46.9% | $288.6M+21.2% | $238.2M+19.6% | $199.2M+61.3% | $123.5M-9.0% | $135.7M-15.7% | $161.0M+238.8% | $47.5M |
| Investing Cash Flow | -$128.6M | -$98.1M+66.2% | -$290.7M-603.1% | -$41.3M-22.2% | -$33.8M+77.2% | -$148.6M-809.2% | -$16.3M+79.8% | -$81.0M-208.0% | -$26.3M+67.6% | -$81.3M-89.8% | -$42.8M | N/A | N/A | -$14.3M+84.6% | -$92.3M-62.9% | -$56.6M |
| Financing Cash Flow | -$531.2M | -$568.1M-258.4% | -$158.5M+65.5% | -$460.1M+8.7% | -$504.0M-120.5% | -$228.6M+49.0% | -$448.5M-69.9% | -$264.0M-89.1% | -$139.6M+30.9% | -$202.1M+7.2% | -$217.9M | N/A | N/A | -$189.0M-719.1% | -$23.1M+80.0% | -$115.6M |
| Dividends Paid | $499.2M | $473.8M+11.9% | $423.5M+10.7% | $382.6M+15.1% | $332.4M+12.9% | $294.5M+10.8% | $265.7M+10.1% | $241.4M+15.4% | $209.2M+27.5% | $164.1M+28.6% | $127.6M+29.5% | $98.5M+41.0% | $69.9M+75.4% | $39.8M-84.5% | $256.2M+249.7% | $73.3M |
Not reported in any period shown, so not listed: Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
WSO Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 | FY18 | FY17 | FY16 | FY15 | FY14 | FY13 | FY12 | FY11 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.1%+1.2pp | 26.8%-0.5pp | 27.4%-0.6pp | 27.9%+1.4pp | 26.6%+2.4pp | 24.2%-0.1pp | 24.3%-0.4pp | 24.6%+0.1pp | 24.5%0.0pp | 24.5%0.0pp | 24.5%+0.2pp | 24.3%+0.2pp | 24.0%+0.3pp | 23.7%-0.7pp | 24.5% |
| Operating Margin | 10.0%-0.3pp | 10.3%-0.7pp | 10.9%-0.5pp | 11.4%+1.4pp | 10.0%+2.1pp | 7.9%+0.2pp | 7.7%-0.5pp | 8.2%0.0pp | 8.2%0.0pp | 8.2%0.0pp | 8.2%+0.4pp | 7.8%+0.5pp | 7.2%+0.7pp | 6.6%-0.1pp | 6.7% |
| Net Margin | 8.1%-0.2pp | 8.3%-0.4pp | 8.7%-1.0pp | 9.7%+1.7pp | 7.9%+2.6pp | 5.3%+0.2pp | 5.2%-0.2pp | 5.3%+0.5pp | 4.8%+0.5pp | 4.3%+0.1pp | 4.2%+0.4pp | 3.8%+0.4pp | 3.4%+0.4pp | 3.0%0.0pp | 3.0% |
| Return on Equity | 21.1%-2.8pp | 23.9%-4.5pp | 28.4%-8.8pp | 37.3%+7.3pp | 29.9%+11.8pp | 18.1%+1.0pp | 17.1%-0.9pp | 18.0%+2.0pp | 16.0%-2.1pp | 18.2%+0.1pp | 18.1%+0.9pp | 17.1%+1.9pp | 15.2%+1.4pp | 13.8%+2.5pp | 11.3% |
| Return on Assets | 13.3%-0.9pp | 14.2%-2.8pp | 17.0%-3.2pp | 20.2%+4.0pp | 16.2%+5.3pp | 10.8%+1.2pp | 9.6%-1.6pp | 11.2%+1.1pp | 10.2%+0.4pp | 9.8%+0.1pp | 9.7%+1.2pp | 8.5%+0.8pp | 7.6%+1.5pp | 6.1%-1.0pp | 7.1% |
| Current Ratio | 4.12+1.0x | 3.13-0.2x | 3.36+0.8x | 2.54-0.2x | 2.70-0.3x | 3.05-0.3x | 3.35-0.7x | 4.03+0.8x | 3.21-0.7x | 3.94-0.4x | 4.37+0.3x | 4.03-0.2x | 4.19+0.6x | 3.60-0.1x | 3.71 |
| Debt-to-Equity | 0.130.0x | 0.130.0x | 0.140.0x | 0.130.0x | 0.17+0.1x | 0.10-0.1x | 0.22+0.1x | 0.10+0.1x | 0.02-0.2x | 0.230.0x | 0.26-0.1x | 0.34+0.1x | 0.27-0.1x | 0.42-0.2x | 0.58 |
| FCF Margin | 7.4%-2.4pp | 9.8%+2.5pp | 7.2%-0.1pp | 7.4%+2.2pp | 5.2%-5.1pp | 10.3%+3.6pp | 6.7%+3.3pp | 3.4%-3.3pp | 6.7%+1.0pp | 5.6%+0.8pp | 4.8%+1.7pp | 3.1%-0.5pp | 3.6%-1.1pp | 4.7%+3.1pp | 1.6% |
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Where Watsco Ranks
Frequently Asked Questions
What is Watsco's annual revenue?
Watsco (WSO) reported $7.2B in total revenue for fiscal year 2025. This represents a -5.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Watsco's revenue growing?
Watsco (WSO) revenue declined by 5.0% year-over-year, from $7.6B to $7.2B in fiscal year 2025.
Is Watsco profitable?
Yes, Watsco (WSO) reported a net income of $587.6M in fiscal year 2025, with a net profit margin of 8.1%.
What is Watsco's EBITDA?
Watsco (WSO) had EBITDA of $764.1M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Watsco have?
As of fiscal year 2025, Watsco (WSO) had $433.3M in cash and equivalents against $361.6M in long-term debt.
What is Watsco's gross margin?
Watsco (WSO) had a gross margin of 28.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Watsco's operating margin?
Watsco (WSO) had an operating margin of 10.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Watsco's net profit margin?
Watsco (WSO) had a net profit margin of 8.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Watsco pay dividends?
Yes, Watsco (WSO) paid $11.70 per share in dividends during fiscal year 2025.
What is Watsco's return on equity (ROE)?
Watsco (WSO) has a return on equity of 21.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Watsco's free cash flow?
Watsco (WSO) generated $535.1M in free cash flow during fiscal year 2025. This represents a -28.0% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Watsco's operating cash flow?
Watsco (WSO) generated $569.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Watsco's total assets?
Watsco (WSO) had $4.4B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Watsco's capital expenditures?
Watsco (WSO) invested $34.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is Watsco's current ratio?
Watsco (WSO) had a current ratio of 4.12 as of fiscal year 2025, which is generally considered healthy.
What is Watsco's debt-to-equity ratio?
Watsco (WSO) had a debt-to-equity ratio of 0.13 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Watsco's return on assets (ROA)?
Watsco (WSO) had a return on assets of 13.3% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Watsco's Altman Z-Score?
Watsco (WSO) has an Altman Z-Score of 7.97, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Watsco's Piotroski F-Score?
Watsco (WSO) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Watsco's earnings high quality?
Watsco (WSO) has an earnings quality ratio of 0.97x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Watsco cover its interest payments?
Watsco (WSO) has an interest coverage ratio of 41.57x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Watsco?
Watsco (WSO) scores 73 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.