Watsco Historical Income Statement
| WSO Stock | USD 568.78 13.99 2.52% |
Historical analysis of Watsco income statement accounts such as Depreciation And Amortization of 36.8 M, Interest Expense of 5.4 M, Total Revenue of 7.6 B or Gross Profit of 2.1 B can show how well Watsco Inc performed in making a profits. Evaluating Watsco income statement over time to spot trends is a great complementary tool to traditional technical analysis and can indicate the direction of Watsco's future profits or losses.
Financial Statement Analysis is much more than just reviewing and examining Watsco Inc latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Watsco Inc is a good buy for the upcoming year.
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About Watsco Income Statement Analysis
Watsco Inc Income Statement consists of revenues and expenses along with the resulting net income or loss. It represents the profit for the accounting period attributable to Watsco shareholders. The income statement also shows Watsco investors and management if the firm made money during the period reported. The result of an income statement is the net income that is calculated after subtracting the expenses from revenue. It is essential to investors both as an absolute measure as well as earnings per share (i.e., EPS).
Watsco Income Statement Chart
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Total Revenue
Total revenue comprises all receipts Watsco Inc generated from the sale of its products or services. The total amount of income generated by the sale of goods or services related to the company's primary operations.Gross Profit
Gross profit is a required income statement account that reflects total revenue of Watsco Inc minus its cost of goods sold. It is profit before Watsco operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.Other Operating Expenses
Other Operating Expenses is the expense which generally does not depend on sales or production quantities of Watsco Inc. It is also known as Watsco overhead expenses. Typically these expenses include marketing, rent and utilities, office, leases, and other overhead cost. Expenses incurred from non-core business activities, including administrative and general expenses, but excluding costs directly related to production.Operating Income
Operating Income is the amount of profit realized from Watsco Inc operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of Watsco Inc is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.Most accounts from Watsco's income statement are interrelated and interconnected. However, analyzing income statement accounts 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 income statement accounts, 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 state. At this time, Watsco's EBIT is very stable compared to the past year. As of the 26th of November 2024, EBITDA is likely to grow to about 846.8 M, though Minority Interest is likely to grow to (97 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 |
Watsco income statement Correlations
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Watsco Account Relationship Matchups
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Watsco income statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Depreciation And Amortization | 24.5M | 25.9M | 28.1M | 31.7M | 35.1M | 36.8M | |
| Interest Expense | 4.0M | 1.2M | 996K | 2.2M | 4.9M | 5.4M | |
| Total Revenue | 4.8B | 5.1B | 6.3B | 7.3B | 7.3B | 7.6B | |
| Gross Profit | 1.2B | 1.2B | 1.7B | 2.0B | 2.0B | 2.1B | |
| Other Operating Expenses | 4.4B | 4.7B | 5.7B | 6.5B | 6.5B | 6.8B | |
| Operating Income | 366.9M | 401.0M | 628.5M | 831.6M | 771.4M | 810.0M | |
| Ebit | 366.9M | 401.0M | 628.5M | 831.6M | 771.4M | 810.0M | |
| Ebitda | 391.4M | 426.9M | 656.7M | 863.3M | 806.5M | 846.8M | |
| Cost Of Revenue | 3.6B | 3.8B | 4.6B | 5.2B | 5.3B | 5.6B | |
| Total Operating Expenses | 800.3M | 833.1M | 1.1B | 1.2B | 1.2B | 1.3B | |
| Income Before Tax | 362.9M | 399.8M | 627.5M | 829.4M | 789.9M | 829.4M | |
| Total Other Income Expense Net | (4.0M) | (1.2M) | (996K) | (2.2M) | 18.5M | 19.4M | |
| Net Income | 246.0M | 269.6M | 418.9M | 601.2M | 536.3M | 563.2M | |
| Income Tax Expense | 67.1M | 76.6M | 128.8M | 125.7M | 155.8M | 163.5M | |
| Selling General Administrative | 800.3M | 833.1M | 1.1B | 1.2B | 1.1B | 1.2B | |
| Net Income Applicable To Common Shares | 246.0M | 269.6M | 418.9M | 549.9M | 632.4M | 664.0M | |
| Minority Interest | 49.8M | 53.6M | 79.8M | (102.5M) | (102.1M) | (97.0M) | |
| Net Income From Continuing Ops | 295.8M | 323.2M | 498.7M | 703.7M | 693.5M | 355.1M | |
| Selling And Marketing Expenses | 54.8M | 55.0M | 70.5M | 86.6M | 82.6M | 59.9M | |
| Tax Provision | 67.1M | 76.6M | 128.8M | 125.7M | 124.8M | 109.6M | |
| Interest Income | 4.0M | 1.2M | 996K | 2.2M | 1.9M | 2.7M | |
| Net Interest Income | (4.0M) | (1.2M) | (996K) | (2.2M) | (5.9M) | (6.2M) | |
| Reconciled Depreciation | 24.5M | 25.9M | 28.1M | 31.7M | 33.6M | 29.5M |
Pair Trading with Watsco
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Watsco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Watsco will appreciate offsetting losses from the drop in the long position's value.Moving together with Watsco Stock
| 0.86 | DXPE | DXP Enterprises | PairCorr |
| 0.8 | FAST | Fastenal Fiscal Year End 16th of January 2025 | PairCorr |
| 0.91 | AIT | Applied Industrial | PairCorr |
Moving against Watsco Stock
| 0.67 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.43 | GIC | Global Industrial | PairCorr |
| 0.36 | TRNS | Transcat | PairCorr |
The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Watsco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Watsco Inc to buy it.
The correlation of Watsco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Watsco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.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 state. You can also try the Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Is Trading Companies & Distributors space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Watsco. If investors know Watsco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Watsco listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.03) | Dividend Share 10.3 | Earnings Share 12.98 | Revenue Per Share 200.984 | Quarterly Revenue Growth 0.016 |
The market value of Watsco Inc is measured differently than its book value, which is the value of Watsco that is recorded on the company's balance sheet. Investors also form their own opinion of Watsco's value that differs from its market value or its book value, called intrinsic value, which is Watsco's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Watsco's market value can be influenced by many factors that don't directly affect Watsco's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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.