Watsco Price To Sales Ratio vs Free Cash Flow Yield Analysis

WSO-B Stock

USD 535.00 15.30 2.94%

Watsco financial indicator trend analysis is more than just analyzing Watsco Inc current accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Watsco Inc is a good investment. Please check the relationship between Watsco Price To Sales Ratio and its Free Cash Flow Yield accounts. Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Price To Sales Ratio vs Free Cash Flow Yield

Price To Sales Ratio vs Free Cash Flow Yield Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Watsco Inc Price To Sales Ratio account and Free Cash Flow Yield. At this time, the significance of the direction appears to have no relationship.

The correlation between Watsco's Price To Sales Ratio and Free Cash Flow Yield is 0.02. Overlapping area represents the amount of variation of Price To Sales Ratio that can explain the historical movement of Free Cash Flow Yield in the same time period over historical financial statements of Watsco Inc, assuming nothing else is changed. The correlation between historical values of Watsco's Price To Sales Ratio and Free Cash Flow Yield is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Price To Sales Ratio of Watsco Inc are associated (or correlated) with its Free Cash Flow Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow Yield has no effect on the direction of Price To Sales Ratio i.e., Watsco's Price To Sales Ratio and Free Cash Flow Yield go up and down completely randomly.

Correlation Coefficient

0.02

Relationship Direction	Positive
Relationship Strength	Insignificant

View All Relationships

Price To Sales Ratio

Price to Sales Ratio is figured by comparing Watsco Inc stock price to its revenues. An advantage to using Price to Sales ratio is that it is based on Watsco sales, a figure that is much harder to manipulate than other Watsco Inc multiples. Because sales tend to be more stable P/S ratio can be a good tool for screening cyclical companies fluctuating earnings patterns. A valuation ratio that compares a company's stock price to its revenues, calculated by dividing the company's market cap by its total sales or revenue over a 12-month period.

Free Cash Flow Yield

A financial solvency ratio that compares the free cash flow per share a company is expected to earn against its market value per share, calculated as free cash flow per share divided by market price per share.

Most indicators from Watsco's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Watsco Inc current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Watsco Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

At present, Watsco's Selling General Administrative is projected to increase significantly based on the last few years of reporting. The current year's Sales General And Administrative To Revenue is expected to grow to 0.20, whereas Tax Provision is forecasted to decline to about 113.2 M.

	2021	2022	2023	2024 (projected)
Interest Expense	996K	2.2M	4.9M	5.4M
Depreciation And Amortization	28.1M	31.7M	35.1M	36.8M

Interest Expense Depreciation And Amortization

Watsco fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Common Stock	Good Will	Current Deferred Revenue
Total Assets		0.79	0.84	0.95	0.99	0.92	0.45	0.96	0.9	0.99	-0.28	0.9	0.99	0.51	0.68	0.99	0.94	0.97	0.97	1.0	0.83	0.53	0.96	0.77	0.78	0.53
Short Long Term Debt Total	0.79		0.64	0.73	0.69	0.73	0.88	0.67	0.65	0.8	-0.44	0.65	0.78	0.36	0.96	0.77	0.78	0.67	0.9	0.77	0.66	0.64	0.75	0.6	0.69	0.29
Other Current Liab	0.84	0.64		0.9	0.83	0.87	0.31	0.84	0.81	0.8	-0.41	0.81	0.81	0.15	0.45	0.85	0.77	0.78	0.83	0.85	0.87	0.2	0.89	0.43	0.47	0.15
Total Current Liabilities	0.95	0.73	0.9		0.93	0.92	0.38	0.92	0.86	0.94	-0.46	0.86	0.94	0.41	0.56	0.96	0.88	0.91	0.94	0.96	0.91	0.43	1.0	0.68	0.7	0.41
Total Stockholder Equity	0.99	0.69	0.83	0.93		0.92	0.3	0.98	0.92	0.97	-0.19	0.92	0.97	0.47	0.57	0.98	0.91	0.98	0.91	0.98	0.81	0.44	0.93	0.73	0.73	0.52
Property Plant And Equipment Net	0.92	0.73	0.87	0.92	0.92		0.35	0.91	0.92	0.92	-0.38	0.92	0.87	0.18	0.55	0.9	0.81	0.88	0.9	0.91	0.95	0.27	0.91	0.51	0.54	0.17
Net Debt	0.45	0.88	0.31	0.38	0.3	0.35		0.29	0.2	0.47	-0.42	0.2	0.46	0.32	0.93	0.45	0.49	0.3	0.63	0.43	0.33	0.62	0.41	0.45	0.54	0.2
Retained Earnings	0.96	0.67	0.84	0.92	0.98	0.91	0.29		0.9	0.93	-0.27	0.9	0.96	0.4	0.54	0.97	0.93	0.92	0.89	0.97	0.82	0.34	0.92	0.66	0.64	0.46
Cash	0.9	0.65	0.81	0.86	0.92	0.92	0.2	0.9		0.9	-0.2	1.0	0.86	0.21	0.49	0.86	0.81	0.89	0.83	0.89	0.81	0.31	0.87	0.51	0.54	0.28
Non Current Assets Total	0.99	0.8	0.8	0.94	0.97	0.92	0.47	0.93	0.9		-0.26	0.9	0.97	0.5	0.71	0.97	0.91	0.97	0.96	0.98	0.83	0.56	0.94	0.77	0.79	0.51
Non Currrent Assets Other	-0.28	-0.44	-0.41	-0.46	-0.19	-0.38	-0.42	-0.27	-0.2	-0.26		-0.2	-0.26	0.06	-0.26	-0.32	-0.34	-0.1	-0.42	-0.29	-0.62	-0.06	-0.45	-0.07	-0.12	0.19
Cash And Short Term Investments	0.9	0.65	0.81	0.86	0.92	0.92	0.2	0.9	1.0	0.9	-0.2		0.86	0.21	0.49	0.86	0.81	0.89	0.83	0.89	0.81	0.31	0.87	0.51	0.54	0.28
Net Receivables	0.99	0.78	0.81	0.94	0.97	0.87	0.46	0.96	0.86	0.97	-0.26	0.86		0.58	0.69	0.99	0.96	0.95	0.95	0.99	0.77	0.56	0.95	0.81	0.81	0.6
Common Stock Shares Outstanding	0.51	0.36	0.15	0.41	0.47	0.18	0.32	0.4	0.21	0.5	0.06	0.21	0.58		0.46	0.51	0.53	0.54	0.46	0.51	0.12	0.81	0.44	0.93	0.89	0.95
Non Current Liabilities Total	0.68	0.96	0.45	0.56	0.57	0.55	0.93	0.54	0.49	0.71	-0.26	0.49	0.69	0.46		0.66	0.68	0.58	0.8	0.67	0.44	0.73	0.59	0.63	0.72	0.4
Inventory	0.99	0.77	0.85	0.96	0.98	0.9	0.45	0.97	0.86	0.97	-0.32	0.86	0.99	0.51	0.66		0.94	0.95	0.96	1.0	0.82	0.5	0.96	0.76	0.76	0.53
Other Current Assets	0.94	0.78	0.77	0.88	0.91	0.81	0.49	0.93	0.81	0.91	-0.34	0.81	0.96	0.53	0.68	0.94		0.85	0.91	0.95	0.74	0.5	0.9	0.74	0.75	0.56
Other Stockholder Equity	0.97	0.67	0.78	0.91	0.98	0.88	0.3	0.92	0.89	0.97	-0.1	0.89	0.95	0.54	0.58	0.95	0.85		0.89	0.96	0.77	0.52	0.91	0.79	0.78	0.57
Total Liab	0.97	0.9	0.83	0.94	0.91	0.9	0.63	0.89	0.83	0.96	-0.42	0.83	0.95	0.46	0.8	0.96	0.91	0.89		0.96	0.83	0.59	0.95	0.73	0.78	0.45
Total Current Assets	1.0	0.77	0.85	0.96	0.98	0.91	0.43	0.97	0.89	0.98	-0.29	0.89	0.99	0.51	0.67	1.0	0.95	0.96	0.96		0.82	0.51	0.96	0.76	0.77	0.54
Short Term Debt	0.83	0.66	0.87	0.91	0.81	0.95	0.33	0.82	0.81	0.83	-0.62	0.81	0.77	0.12	0.44	0.82	0.74	0.77	0.83	0.82		0.19	0.88	0.43	0.46	0.06
Intangible Assets	0.53	0.64	0.2	0.43	0.44	0.27	0.62	0.34	0.31	0.56	-0.06	0.31	0.56	0.81	0.73	0.5	0.5	0.52	0.59	0.51	0.19		0.47	0.82	0.9	0.73
Accounts Payable	0.96	0.75	0.89	1.0	0.93	0.91	0.41	0.92	0.87	0.94	-0.45	0.87	0.95	0.44	0.59	0.96	0.9	0.91	0.95	0.96	0.88	0.47		0.7	0.72	0.45
Common Stock	0.77	0.6	0.43	0.68	0.73	0.51	0.45	0.66	0.51	0.77	-0.07	0.51	0.81	0.93	0.63	0.76	0.74	0.79	0.73	0.76	0.43	0.82	0.7		0.98	0.89
Good Will	0.78	0.69	0.47	0.7	0.73	0.54	0.54	0.64	0.54	0.79	-0.12	0.54	0.81	0.89	0.72	0.76	0.75	0.78	0.78	0.77	0.46	0.9	0.72	0.98		0.83
Current Deferred Revenue	0.53	0.29	0.15	0.41	0.52	0.17	0.2	0.46	0.28	0.51	0.19	0.28	0.6	0.95	0.4	0.53	0.56	0.57	0.45	0.54	0.06	0.73	0.45	0.89	0.83

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Watsco Account Relationship Matchups

Watsco fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	2.6B	2.5B	3.1B	3.5B	3.7B	3.9B
Short Long Term Debt Total	310.0M	216.1M	369.7M	390.5M	404.8M	425.0M
Other Current Liab	69.4M	71.8M	278.0M	303.4M	242.4M	254.5M
Total Current Liabilities	461.7M	499.7M	726.7M	906.5M	712.0M	747.6M
Total Stockholder Equity	1.4B	1.5B	1.7B	1.9B	2.2B	2.3B
Property Plant And Equipment Net	321.9M	307.4M	379.5M	442.7M	505.0M	530.2M
Net Debt	235.5M	65.3M	242.3M	231.6M	194.7M	204.4M
Retained Earnings	632.5M	636.4M	760.8M	1.0B	1.2B	1.2B
Cash	74.5M	146.1M	118.3M	147.5M	210.1M	220.6M
Non Current Assets Total	1.0B	999.9M	1.1B	1.2B	1.3B	1.4B
Non Currrent Assets Other	9.5M	12.2M	9.2M	(173.9M)	8.2M	5.2M
Cash And Short Term Investments	74.5M	146.1M	118.3M	147.5M	210.1M	220.6M
Net Receivables	533.8M	535.3M	698.5M	747.1M	797.8M	837.7M
Common Stock Shares Outstanding	34.7M	35.2M	35.4M	35.7M	36.5M	27.7M
Liabilities And Stockholders Equity	2.6B	2.5B	3.1B	3.5B	3.8B	4.0B
Non Current Liabilities Total	379.7M	217.4M	361.7M	333.4M	401.0M	421.0M
Inventory	920.8M	793.9M	1.1B	1.4B	1.3B	1.4B
Other Current Assets	17.7M	21.8M	29.2M	34.0M	36.7M	38.5M
Other Stockholder Equity	820.4M	863.5M	916.5M	885.6M	1.1B	1.1B
Total Liab	841.4M	717.2M	1.1B	1.2B	1.2B	1.2B
Total Current Assets	1.5B	1.5B	2.0B	2.3B	2.4B	2.5B
Short Term Debt	69.4M	71.8M	84.5M	147.0M	100.3M	105.3M
Intangible Assets	172.0M	169.9M	186.9M	175.2M	218.1M	117.6M
Accounts Payable	239.7M	251.6M	364.2M	456.1M	369.4M	387.9M
Accumulated Other Comprehensive Income	(39.1M)	(34.9M)	(34.2M)	(47.7M)	(42.3M)	(40.2M)
Common Stock	21.5M	21.7M	21.8M	21.8M	22.1M	20.8M
Good Will	411.2M	412.5M	434.0M	430.7M	457.1M	378.8M
Current Deferred Revenue	185.5M	156.8M	83.2M	104.6M	120.2M	95.9M
Other Liab	67.7M	73.1M	85.7M	89.9M	80.9M	61.0M
Net Tangible Assets	852.2M	1.5B	1.7B	1.3B	1.5B	1.0B
Other Assets	6.6M	6.2M	6.4M	6.4M	5.7M	11.4M
Long Term Debt	157.7M	144.3M	285.2M	243.5M	15.4M	14.6M
Long Term Investments	94.8M	97.8M	114.8M	132.8M	146.2M	73.5M
Short Long Term Debt	69.4M	71.8M	84.5M	147.0M	100.3M	52.2M
Property Plant Equipment	321.9M	98.2M	111.0M	125.4M	144.2M	131.4M

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When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:

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Please note, there is a significant difference between Watsco's value and its price as these two are different measures arrived at by different means. Investors typically determine if Watsco is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Watsco's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Watsco Price To Sales Ratio vs Free Cash Flow Yield Analysis

Price To Sales Ratio vs Free Cash Flow Yield

Price To Sales Ratio vs Free Cash Flow Yield Correlation Analysis

Correlation Coefficient

Price To Sales Ratio

Free Cash Flow Yield

Watsco fundamental ratios Correlations

Watsco Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Watsco fundamental ratios Accounts

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Total Current Assets	+ 1.0	Total Assets
Accounts Payable	+ 1.0	Total Current Liabilities
Cash And Short Term Investments	+ 1.0	Cash
Total Current Assets	+ 1.0	Inventory
Total Stockholder Equity	+ 0.99	Total Assets
Non Current Assets Total	+ 0.99	Total Assets

Short Term Debt	- 0.62	Non Currrent Assets Other
Non Currrent Assets Other	- 0.46	Total Current Liabilities
Accounts Payable	- 0.45	Non Currrent Assets Other
Non Currrent Assets Other	- 0.44	Short Long Term Debt Total
Total Liab	- 0.42	Non Currrent Assets Other
Non Currrent Assets Other	- 0.42	Net Debt