Watsco (WSO) Ratios
Watsco Ratios
MX:WSO's free cash flow for Q3 2026 was $315.38M. For the 2026 fiscal year, MX:WSO's free cash flow was decreased by $-9.72M and operating cash flow was $325.10M. See a summary of the company’s cash flow.
| Ratios | Dec 25 | Dec 24 | Dec 23 | Dec 22 | Dec 21 |
|---|---|---|---|---|---|
| Liquidity Ratios | |||||
| Current Ratio | 4.12 | 3.13 | 3.36 | 2.54 | 2.70 |
| Quick Ratio | 2.18 | 1.72 | 1.47 | 1.02 | 1.16 |
| Cash Ratio | 0.60 | 0.53 | 0.30 | 0.16 | 0.16 |
| Solvency Ratio | 0.44 | 0.39 | 0.51 | 0.51 | 0.41 |
| Operating Cash Flow Ratio | 0.79 | 0.79 | 0.79 | 0.63 | 0.48 |
| Short-Term Operating Cash Flow Coverage | 0.00 | 0.00 | 5.60 | 10.14 | 4.14 |
| Net Current Asset Value | $ 1.72B | $ 1.61B | $ 1.28B | $ 1.06B | $ 872.95M |
| Leverage Ratios | |||||
| Debt-to-Assets Ratio | 0.11 | 0.10 | 0.14 | 0.11 | 0.15 |
| Debt-to-Equity Ratio | 0.17 | 0.17 | 0.23 | 0.21 | 0.27 |
| Debt-to-Capital Ratio | 0.15 | 0.14 | 0.18 | 0.17 | 0.21 |
| Long-Term Debt-to-Capital Ratio | 0.00 | 0.00 | 0.01 | 0.00 | 0.05 |
| Financial Leverage Ratio | 1.60 | 1.71 | 1.67 | 1.85 | 1.85 |
| Debt Service Coverage Ratio | 0.00 | -29.96 | 6.16 | 12.21 | 6.17 |
| Interest Coverage Ratio | 0.00 | -37.46 | 161.55 | 384.10 | 631.05 |
| Debt to Market Cap | 0.00 | 0.00 | 0.01 | 0.01 | 0.02 |
| Interest Debt Per Share | 12.63 | 11.37 | 13.96 | 11.04 | 12.92 |
| Net Debt to EBITDA | 0.06 | -0.10 | 0.37 | 0.29 | 0.51 |
| Profitability Margins | |||||
| Gross Profit Margin | 28.05% | 26.84% | 27.35% | 27.91% | 26.55% |
| EBIT Margin | 10.19% | 9.86% | 10.55% | 11.12% | 10.01% |
| EBITDA Margin | 10.79% | 10.40% | 11.03% | 11.56% | 10.46% |
| Operating Profit Margin | 9.57% | 10.26% | 10.91% | 11.43% | 10.01% |
| Pretax Profit Margin | 10.19% | 10.54% | 10.84% | 11.40% | 9.99% |
| Net Profit Margin | 6.87% | 7.04% | 7.36% | 8.26% | 6.67% |
| Continuous Operations Profit Margin | 8.12% | 8.34% | 8.71% | 9.67% | 7.94% |
| Net Income Per EBT | 67.37% | 66.81% | 67.90% | 72.48% | 66.76% |
| EBT Per EBIT | 106.51% | 102.67% | 99.38% | 99.74% | 99.84% |
| Return on Assets (ROA) | 11.15% | 11.83% | 14.38% | 17.23% | 13.58% |
| Return on Equity (ROE) | 17.87% | 20.18% | 24.05% | 31.82% | 25.16% |
| Return on Capital Employed (ROCE) | 18.53% | 22.03% | 26.34% | 32.21% | 26.64% |
| Return on Invested Capital (ROIC) | 14.31% | 16.92% | 19.83% | 25.86% | 19.76% |
| Return on Tangible Assets | 13.14% | 13.85% | 17.56% | 20.86% | 17.00% |
| Earnings Yield | 3.89% | 3.02% | 3.43% | 6.78% | 3.80% |
| Efficiency Ratios | |||||
| Receivables Turnover | 9.09 | 8.68 | 9.13 | 9.74 | 8.99 |
| Payables Turnover | 14.86 | 11.35 | 14.33 | 11.50 | 12.67 |
| Inventory Turnover | 3.76 | 4.02 | 3.93 | 3.83 | 4.14 |
| Fixed Asset Turnover | 12.30 | 13.61 | 14.42 | 16.43 | 16.55 |
| Asset Turnover | 1.62 | 1.68 | 1.95 | 2.09 | 2.04 |
| Working Capital Turnover Ratio | 3.34 | 4.04 | 4.74 | 5.54 | 5.63 |
| Cash Conversion Cycle | 112.73 | 100.64 | 107.43 | 101.11 | 100.04 |
| Days of Sales Outstanding | 40.14 | 42.06 | 39.98 | 37.49 | 40.59 |
| Days of Inventory Outstanding | 97.14 | 90.73 | 92.93 | 95.37 | 88.27 |
| Days of Payables Outstanding | 24.56 | 32.15 | 25.48 | 31.75 | 28.82 |
| Operating Cycle | 137.29 | 132.79 | 132.91 | 132.85 | 128.86 |
| Cash Flow Ratios | |||||
| Operating Cash Flow Per Share | 15.03 | 20.61 | 15.38 | 16.08 | 9.92 |
| Free Cash Flow Per Share | 14.12 | 19.81 | 14.41 | 15.08 | 9.20 |
| Dividend Paid and CapEx Coverage Ratio | 1.12 | 1.70 | 1.34 | 1.55 | 1.09 |
| Capital Expenditure Coverage Ratio | 16.49 | 25.69 | 15.84 | 16.04 | 13.73 |
| Operating Cash Flow Coverage Ratio | 1.19 | 1.73 | 1.11 | 1.46 | 0.77 |
| Operating Cash Flow to Sales Ratio | 0.08 | 0.10 | 0.08 | 0.08 | 0.06 |
| Free Cash Flow Yield | 4.19% | 4.18% | 3.36% | 6.05% | 2.94% |
| Valuation Ratios | |||||
| Price-to-Earnings (P/E) Ratio | 27.51 | 35.52 | 29.18 | 14.75 | 26.32 |
| Price-to-Sales (P/S) Ratio | 1.76 | 2.33 | 2.15 | 1.22 | 1.76 |
| Price-to-Book (P/B) Ratio | 4.59 | 6.69 | 7.02 | 4.69 | 6.62 |
| Price-to-Free Cash Flow (P/FCF) Ratio | 23.87 | 23.92 | 29.73 | 16.54 | 34.02 |
| Price-to-Operating Cash Flow Ratio | 22.42 | 22.99 | 27.85 | 15.51 | 31.55 |
| Price-to-Earnings Growth (PEG) Ratio | -3.37 | -14.72 | -2.52 | 0.35 | 0.49 |
| Enterprise Value Multiple | 16.40 | 22.34 | 19.84 | 10.84 | 17.30 |
| Enterprise Value | 12.82B | 17.70B | 15.95B | 9.11B | 11.36B |
| EV to EBITDA | 16.40 | 22.34 | 19.84 | 10.84 | 17.30 |
| EV to Sales | 1.77 | 2.32 | 2.19 | 1.25 | 1.81 |
| EV to Free Cash Flow | 23.95 | 23.82 | 30.29 | 16.99 | 35.06 |
| EV to Operating Cash Flow | 22.50 | 22.89 | 28.38 | 15.93 | 32.51 |
| Tangible Book Value Per Share | 67.26 | 64.09 | 53.13 | 46.18 | 39.06 |
| Shareholders’ Equity Per Share | 73.39 | 70.83 | 61.04 | 53.12 | 47.24 |
| Tax and Other Ratios | |||||
| Effective Tax Rate | 0.20 | 0.21 | 0.20 | 0.15 | 0.21 |
| Revenue Per Share | 191.01 | 203.10 | 199.38 | 204.54 | 178.19 |
| Net Income Per Share | 13.11 | 14.30 | 14.68 | 16.90 | 11.89 |
| Tax Burden | 0.67 | 0.67 | 0.68 | 0.72 | 0.67 |
| Interest Burden | 1.00 | 1.07 | 1.03 | 1.03 | 1.00 |
| Research & Development to Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| SG&A to Revenue | 0.18 | 0.16 | 0.00 | 0.00 | 0.00 |
| Stock-Based Compensation to Revenue | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Income Quality | 1.23 | 1.22 | 0.89 | 0.81 | 0.70 |
Currency in USD