Cash flow Watsco, Inc.

Equities

WSO

US9426222009

Electrical Components & Equipment

Market Closed - Nyse Other stock markets 04:00:02 2026-02-10 pm EST			5-day change	1st Jan Change
425.55 ^USD	+2.61%		+9.00%	+26.29%

Jan. 05	UBS Cuts Price Target on Watsco to $370 From $390, Maintains Neutral Rating	MT
Jan. 02	Watsco, Inc. Declares Regular Quarterly Cash Dividend on Common and Class B Common Stock, Payable on January 30, 2026	CI

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Published financial data: WATSCO, INC.

Annual

Quarterly

Halfyear

YTD

LTM

Fiscal Period: December	2020	2021	2022	2023	2024
Revenues	5.05B	6.28B	7.27B	7.28B	7.62B
Total Revenues	5.05B	6.28B	7.27B	7.28B	7.62B
Cost of Goods Sold, Total	3.83B	4.61B	5.24B	5.29B	5.57B
Gross Profit	1.22B	1.67B	2.03B	1.99B	2.04B
Selling General & Admin Expenses, Total	807M	1.03B	1.19B	1.19B	1.26B
Depreciation & Amortization - (IS)	19.96M	22.57M	26.97M	30.77M	35.39M
Amortization of Goodwill and Intangible Assets - (IS)	5.94M	5.56M	4.71M	4.32M	5.43M
Other Operating Expenses, Total	833M	1.06B	1.22B	1.22B	1.3B
Operating Income	390M	609M	810M	771M	748M
Interest Expense, Total	-1.24M	-996K	-2.16M	-4.92M	-
Interest And Investment Income	-	-	-	-	20.87M
Net Interest Expenses	-1.24M	-996K	-2.16M	-4.92M	20.87M
Income (Loss) On Equity Invest.	11.26M	19.3M	22.67M	26.18M	30.5M
Currency Exchange Gains (Loss)	-490K	-237K	-917K	-2.79M	3.23M
EBT, Excl. Unusual Items	400M	628M	829M	790M	803M
EBT, Incl. Unusual Items	400M	628M	829M	790M	803M
Income Tax Expense	76.62M	129M	126M	156M	167M
Earnings From Continuing Operations	323M	499M	704M	634M	636M
Net Income to Company	323M	499M	704M	634M	636M
Minority Interest	-53.59M	-79.79M	-103M	-97.8M	-99.45M
Net Income - (IS)	270M	419M	601M	536M	536M
Preferred Dividend and Other Adjustments	23.14M	37.27M	51.36M	36.97M	37.39M
Net Income to Common Incl Extra Items	246M	382M	550M	499M	499M
Net Income to Common Excl. Extra Items	246M	382M	550M	499M	499M
Per Share Items
Net EPS - Basic	7.03	10.83	15.46	13.72	13.34
Basic EPS - Continuing Operations	7.03	10.83	15.46	13.72	13.34
Basic Weighted Average Shares Outstanding	35.07M	35.24M	35.56M	36.41M	37.39M
Net EPS - Diluted	7.01	10.78	15.41	13.67	13.3
Diluted EPS - Continuing Operations	7.01	10.78	15.41	13.67	13.3
Diluted Weighted Average Shares Outstanding	35.15M	35.42M	35.68M	36.53M	37.51M
Normalized Basic EPS	5.6	8.86	11.69	10.87	10.76
Normalized Diluted EPS	5.58	8.82	11.65	10.84	10.72
Dividend Per Share	6.92	7.62	8.55	9.8	10.55
Payout Ratio	98.57	70.3	55.3	71.34	78.97
Supplemental Items
EBITDA	416M	638M	842M	807M	789M
EBITA	396M	615M	815M	776M	753M
EBIT	390M	609M	810M	771M	748M
EBITDAR	506M	739M	955M	930M	926M
Effective Tax Rate - (Ratio)	19.17	20.52	15.16	19.72	20.79
Current Domestic Taxes	71.8M	112M	98.68M	149M	146M
Current Foreign Taxes	4.78M	10.99M	13.57M	14.05M	20.35M
Total Current Taxes	76.58M	123M	112M	163M	167M
Deferred Domestic Taxes	239K	7.81M	14.46M	-6.88M	1.77M
Deferred Foreign Taxes	-199K	-1.87M	-995K	-297K	-1.54M
Total Deferred Taxes	40K	5.94M	13.47M	-7.18M	229K
Normalized Net Income	196M	312M	416M	396M	402M
Supplemental Operating Expense Items
Advertising Expense	12.59M	21.55M	25.88M	28.24M	25.34M
Selling and Marketing Expenses	55.02M	70.45M	86.62M	82.6M	84.76M
Net Rental Expense, Total	89.57M	102M	113M	124M	137M
Imputed Operating Lease Interest Expense	2.97M	2.77M	5.16M	12.24M	-
Imputed Operating Lease Depreciation	86.6M	99.1M	108M	111M	-
Stock-Based Comp., SG&A Exp. (Total)	22.13M	25.36M	28.82M	30M	35.02M
Stock-Based Comp., Other (Total)	4.54M	5.15M	6.75M	8.86M	8.74M
Total Stock-Based Compensation	26.67M	30.52M	35.57M	38.86M	43.76M

Fiscal Period: December	2020	2021	2022	2023	2024
Assets
Cash And Equivalents	146M	118M	148M	210M	526M
Short Term Investments	-	-	-	-	256M
Total Cash And Short Term Investments	146M	118M	148M	210M	782M
Accounts Receivable, Total	535M	698M	747M	798M	878M
Total Receivables	535M	698M	747M	798M	878M
Inventory	781M	1.12B	1.37B	1.35B	1.39B
Deferred Tax Assets Current	-	-	-	-	-
Other Current Assets, Total	21.79M	29.21M	33.95M	36.7M	34.67M
Total Current Assets	1.48B	1.96B	2.3B	2.39B	3.08B
Gross Property Plant And Equipment	465M	553M	639M	726M	809M
Accumulated Depreciation	-158M	-174M	-196M	-221M	-250M
Net Property Plant And Equipment	307M	380M	443M	505M	560M
Long-term Investments	104M	118M	134M	149M	171M
Goodwill	412M	434M	431M	457M	452M
Other Intangibles, Total	170M	187M	175M	218M	208M
Other Long-Term Assets, Total	6.18M	6.4M	6.36M	8.2M	8.35M
Total Assets	2.48B	3.09B	3.49B	3.73B	4.48B
Liabilities
Accounts Payable, Total	252M	364M	456M	369M	491M
Accrued Expenses, Total	151M	261M	282M	221M	361M
Current Portion of Long-Term Debt	-	-	56.4M	-	-
Current Portion of Leases	71.8M	84.5M	90.6M	100M	110M
Other Current Liabilities	12.84M	16.71M	21.02M	21.39M	21.29M
Total Current Liabilities	487M	727M	907M	712M	984M
Long-Term Debt	-	89M	-	15.4M	-
Long-Term Leases	144M	196M	244M	289M	337M
Deferred Tax Liability Non Current	62.55M	68.65M	81.36M	87.86M	86.3M
Other Non Current Liabilities	10.56M	7.86M	8.52M	8.59M	7.89M
Total Liabilities	705M	1.09B	1.24B	1.11B	1.42B
Common Stock, Total	21.7M	21.84M	21.81M	22.13M	22.22M
Additional Paid In Capital	951M	1B	973M	1.15B	1.47B
Retained Earnings	636M	761M	1.03B	1.18B	1.3B
Treasury Stock	-87.44M	-87.44M	-87.44M	-86.63M	-73.48M
Comprehensive Income and Other	-34.87M	-34.18M	-47.71M	-42.33M	-59.89M
Total Common Equity	1.49B	1.66B	1.89B	2.23B	2.66B
Minority Interest	293M	332M	359M	386M	407M
Total Equity	1.78B	2B	2.25B	2.62B	3.06B
Total Liabilities And Equity	2.48B	3.09B	3.49B	3.73B	4.48B
Supplemental Items
ECS Total Shares Outstanding on Filing Date	35.28M	35.41M	36.24M	36.76M	37.78M
ECS Total Common Shares Outstanding	35.19M	35.34M	36.21M	36.75M	37.75M
Book Value / Share	42.25	47.11	52.18	60.67	70.39
Tangible Book Value	904M	1.04B	1.28B	1.55B	2B
Tangible Book Value Per Share	25.7	29.54	35.44	42.3	52.9
Total Debt	216M	370M	391M	405M	447M
Net Debt	70.08M	251M	243M	195M	-334M
Debt Equivalent Oper. Leases	717M	815M	906M	989M	1.1B
Minority Interest, Total (Incl. Fin. Div)	293M	332M	359M	386M	407M
Equity Method Investments, Total	97.85M	115M	133M	146M	169M
Account Code - Inventory Valuation	6	6	6	6	6
Land - (BS)	741K	676K	676K	676K	676K
Buildings, Total	80.88M	85.86M	93.03M	100M	103M
Machinery, Total	174M	198M	228M	257M	286M
Full Time Employees	5.8K	6.85K	7.2K	7.35K	7.22K
Part Time Employees	-	50	75	75	75
Accumulated Allowance for Doubtful Accounts (Supple)	7.09M	11.32M	18.34M	21.53M	15.81M

Fiscal Period: December	2020	2021	2022	2023	2024
Net Income	270M	419M	601M	536M	536M
Depreciation & Amortization - CF	19.96M	22.57M	26.97M	30.77M	35.39M
Amortization of Goodwill and Intangible Assets - (CF)	5.94M	5.56M	4.71M	4.32M	5.43M
Depreciation & Amortization, Total	25.91M	28.13M	31.68M	35.09M	40.82M
(Gain) Loss From Sale Of Asset	17K	350K	-1.62M	-143K	536K
(Income) Loss On Equity Investments - (CF)	-11.26M	-19.3M	-22.67M	-26.18M	-30.5M
Stock-Based Compensation (CF)	26.67M	30.52M	35.57M	38.86M	43.76M
Tax Benefit from Stock Options	-	-	-	-	-
Provision and Write-off of Bad Debts	2.69M	6.89M	8.54M	7.16M	4.28M
Other Operating Activities, Total	50.47M	85.73M	116M	90.62M	99.68M
Change In Accounts Receivable	-3.56M	-130M	-60.15M	-36.04M	-85.56M
Change In Inventories	140M	-244M	-260M	64.62M	-41.68M
Change In Accounts Payable	33.94M	183M	122M	-162M	198M
Change in Other Net Operating Assets	-	-10.44M	1.33M	13.66M	7.7M
Cash from Operations	534M	350M	572M	562M	773M
Capital Expenditure	-16.44M	-25.46M	-35.65M	-35.48M	-30.09M
Sale of Property, Plant, and Equipment	94K	1.36M	1.86M	1.31M	262K
Cash Acquisitions	-	-129M	-47K	-3.82M	-5.17M
Investment in Marketable and Equity Securities, Total	-	4.99M	-	-3.35M	-256M
Cash from Investing	-16.34M	-149M	-33.84M	-41.34M	-291M
Short Term Debt Issued, Total	-	-	-	-	-
Long-Term Debt Issued, Total	-	89M	-	15.4M	-
Total Debt Issued	-	89M	-	15.4M	-
Short Term Debt Repaid, Total	-156M	-	-	-	-
Long-Term Debt Repaid, Total	-	-2.04M	-35.64M	-60.44M	-21.43M
Total Debt Repaid	-156M	-2.04M	-35.64M	-60.44M	-21.43M
Issuance of Common Stock	19.26M	21.01M	20.42M	44.31M	326M
Repurchase of Common Stock	-2.3M	-1.09M	-87.11M	-2.83M	-39.67M
Common Dividends Paid	-266M	-295M	-332M	-383M	-424M
Common & Preferred Stock Dividends Paid	-266M	-295M	-332M	-383M	-424M
Other Financing Activities, Total	-44.04M	-40.96M	-69.18M	-73.86M	-
Cash from Financing	-448M	-229M	-504M	-460M	-159M
Foreign Exchange Rate Adjustments	2.07M	-186K	-4.93M	2.07M	-7.74M
Net Change in Cash	71.61M	-27.8M	29.24M	62.61M	316M
Supplemental Items
Cash Interest Paid	1.84M	913K	3.5M	10.12M	969K
Cash Income Tax Paid (Refund)	70.89M	125M	106M	188M	125M
Levered Free Cash Flow	436M	136M	346M	339M	668M
Unlevered Free Cash Flow	437M	136M	347M	342M	668M
Change In Net Working Capital	-157M	278M	191M	178M	-146M
Net Debt Issued / Repaid	-156M	86.96M	-35.64M	-45.04M	-21.43M

Fiscal Period: December	2020	2021	2022	2023	2024
Profitability
Return on Assets	9.68	13.68	15.4	13.36	11.39
Return on Total Capital	11.92	17.46	20.22	17.04	14.31
Return On Equity %	18.5	26.41	33.15	26.07	22.38
Return on Common Equity	16.87	24.22	30.94	24.25	20.42
Margin Analysis
Gross Profit Margin %	24.19	26.55	27.91	27.35	26.84
SG&A Margin	15.96	16.4	16.34	16.28	16.48
EBITDA Margin %	8.23	10.15	11.57	11.07	10.35
EBITA Margin %	7.84	9.79	11.2	10.65	9.89
EBIT Margin %	7.72	9.7	11.13	10.59	9.82
Income From Continuing Operations Margin %	6.39	7.94	9.67	8.71	8.34
Net Income Margin %	5.33	6.67	8.26	7.36	7.04
Net Avail. For Common Margin %	4.88	6.08	7.56	6.86	6.55
Normalized Net Income Margin	3.88	4.97	5.72	5.44	5.28
Levered Free Cash Flow Margin	8.63	2.16	4.75	4.66	8.76
Unlevered Free Cash Flow Margin	8.64	2.17	4.77	4.7	8.76
Asset Turnover
Asset Turnover	2.01	2.25	2.21	2.02	1.86
Fixed Assets Turnover	16.07	18.28	17.69	15.37	14.31
Receivables Turnover (Average Receivables)	9.46	10.18	10.06	9.43	9.09
Inventory Turnover (Average Inventory)	4.5	4.86	4.22	3.89	4.08
Short Term Liquidity
Current Ratio	3.05	2.7	2.54	3.36	3.13
Quick Ratio	1.4	1.12	0.99	1.42	1.69
Operating Cash Flow to Current Liabilities	1.1	0.48	0.63	0.79	0.79
Days Sales Outstanding (Average Receivables)	38.7	35.85	36.27	38.71	40.25
Days Outstanding Inventory (Average Inventory)	81.28	75.05	86.5	93.72	89.72
Average Days Payable Outstanding	24.34	22.72	27.23	28.59	28.05
Cash Conversion Cycle (Average Days)	95.64	88.18	95.54	103.84	101.92
Long Term Solvency
Total Debt/Equity	12.14	18.51	17.37	15.47	14.6
Total Debt / Total Capital	10.83	15.62	14.8	13.4	12.74
LT Debt/Equity	8.11	14.28	10.83	11.64	11
Long-Term Debt / Total Capital	7.23	12.05	9.23	10.08	9.6
Total Liabilities / Total Assets	28.36	35.27	35.55	29.85	31.59
EBIT / Interest Expense	314.98	611.91	374.05	156.79	-
EBITDA / Interest Expense	408.19	742.44	441.01	189.05	-
(EBITDA - Capex) / Interest Expense	394.92	716.87	424.54	181.84	-
Total Debt / EBITDA	0.43	0.5	0.41	0.44	0.48
Net Debt / EBITDA	0.14	0.34	0.25	0.21	-0.36
Total Debt / (EBITDA - Capex)	0.44	0.52	0.42	0.45	0.5
Net Debt / (EBITDA - Capex)	0.14	0.35	0.26	0.22	-0.37
Growth Over Prior Year
Total Revenues, 1 Yr. Growth %	5.97	24.24	15.83	0.13	4.59
Gross Profit, 1 Yr. Growth %	5.69	36.37	21.75	-1.88	2.64
EBITDA, 1 Yr. Growth %	9.04	53.21	31.98	-4.16	-2.19
EBITA, 1 Yr. Growth %	9.19	55.23	32.44	-4.76	-2.87
EBIT, 1 Yr. Growth %	9.27	56.17	32.87	-4.74	-3.03
Earnings From Cont. Operations, 1 Yr. Growth %	9.26	54.32	41.1	-9.88	0.25
Net Income, 1 Yr. Growth %	9.61	55.41	43.5	-10.78	-0.01
Normalized Net Income, 1 Yr. Growth %	10.92	59.17	33.11	-4.8	1.6
Diluted EPS Before Extra, 1 Yr. Growth %	7.78	53.72	43	-11.29	-2.7
Accounts Receivable, 1 Yr. Growth %	0.28	30.48	6.97	6.79	10.04
Inventory, 1 Yr. Growth %	-15.15	42.77	22.83	-1.67	2.83
Net Property, Plant and Equip., 1 Yr. Growth %	-4.5	23.47	16.65	14.06	10.83
Total Assets, 1 Yr. Growth %	-2.81	24.21	13.04	6.91	20.12
Tangible Book Value, 1 Yr. Growth %	6.11	15.46	22.92	21.13	28.44
Common Equity, 1 Yr. Growth %	3.57	11.99	13.47	18.03	19.16
Cash From Operations, 1 Yr. Growth %	59.15	-34.58	63.62	-1.75	37.57
Capital Expenditures, 1 Yr. Growth %	-7.69	54.93	40.01	-0.49	-15.19
Levered Free Cash Flow, 1 Yr. Growth %	156.1	-68.91	154.85	-1.86	96.85
Unlevered Free Cash Flow, 1 Yr. Growth %	152.81	-68.83	154.68	-1.35	95.08
Dividend Per Share, 1 Yr. Growth %	8.2	10.11	12.13	14.62	7.65
Compound Annual Growth Rate Over Two Years
Total Revenues, 2 Yr. CAGR %	5.44	14.74	19.96	7.69	2.34
Gross Profit, 2 Yr. CAGR %	4.48	20.06	28.85	9.3	0.35
EBITDA, 2 Yr. CAGR %	4	29.25	42.2	12.47	-3.18
EBITA, 2 Yr. CAGR %	3.76	30.19	43.38	12.31	-3.82
EBIT, 2 Yr. CAGR %	3.73	30.63	44.05	12.5	-3.89
Earnings From Cont. Operations, 2 Yr. CAGR %	4.4	29.85	47.56	12.76	-4.95
Net Income, 2 Yr. CAGR %	5.34	30.51	49.33	13.15	-5.55
Normalized Net Income, 2 Yr. CAGR %	5.23	32.87	45.56	12.57	-1.66
Diluted EPS Before Extra, 2 Yr. CAGR %	3.92	28.71	48.26	12.63	-7.09
Accounts Receivable, 2 Yr. CAGR %	3.27	14.39	18.14	6.88	8.4
Inventory, 2 Yr. CAGR %	-3.39	10.06	32.43	9.9	0.56
Net Property, Plant and Equip., 2 Yr. CAGR %	83.75	8.59	20.01	15.35	12.43
Total Assets, 2 Yr. CAGR %	7.22	9.87	18.49	9.93	13.32
Tangible Book Value, 2 Yr. CAGR %	5.79	10.68	19.13	22.02	24.73
Common Equity, 2 Yr. CAGR %	5.02	7.7	12.73	15.73	18.59
Cash From Operations, 2 Yr. CAGR %	77.01	2.03	3.46	26.79	16.26
Capital Expenditures, 2 Yr. CAGR %	-2.11	19.59	47.28	18.04	-8.13
Levered Free Cash Flow, 2 Yr. CAGR %	123.37	-10.78	-10.99	58.15	39
Unlevered Free Cash Flow, 2 Yr. CAGR %	121.41	-11.23	-10.9	58.51	38.73
Dividend Per Share, 2 Yr. CAGR %	11.2	9.15	11.12	13.37	11.08
Compound Annual Growth Rate Over Three Years
Total Revenues, 3 Yr. CAGR %	5.2	11.37	15.1	12.95	6.65
Gross Profit, 3 Yr. CAGR %	4.69	14.18	20.62	17.67	7.03
EBITDA, 3 Yr. CAGR %	3.73	18.34	30.15	24.68	7.35
EBITA, 3 Yr. CAGR %	3.62	18.67	30.93	25.1	7
EBIT, 3 Yr. CAGR %	3.62	18.89	31.37	25.5	7.07
Earnings From Cont. Operations, 3 Yr. CAGR %	7.9	18.92	33.5	25.19	8.43
Net Income, 3 Yr. CAGR %	8.99	19.92	34.7	25.77	8.58
Normalized Net Income, 3 Yr. CAGR %	5.3	20.8	32.95	26.35	8.78
Diluted EPS Before Extra, 3 Yr. CAGR %	6.48	18.4	33.31	24.94	7.27
Accounts Receivable, 3 Yr. CAGR %	3.84	11.64	11.86	14.23	7.92
Inventory, 3 Yr. CAGR %	0.87	10.04	14.17	19.92	7.49
Net Property, Plant and Equip., 3 Yr. CAGR %	49.94	60.94	11.21	17.99	13.82
Total Assets, 3 Yr. CAGR %	6.67	12.61	10.92	14.5	13.23
Tangible Book Value, 3 Yr. CAGR %	6.24	8.92	14.62	19.79	24.13
Common Equity, 3 Yr. CAGR %	4.63	7.3	9.59	14.47	16.86
Cash From Operations, 3 Yr. CAGR %	20.35	27.02	19.43	1.69	30.29
Capital Expenditures, 3 Yr. CAGR %	-2.76	14.08	26.04	29.24	5.72
Levered Free Cash Flow, 3 Yr. CAGR %	18.23	15.75	26.6	-8.05	70.12
Unlevered Free Cash Flow, 3 Yr. CAGR %	17.71	15.18	26.14	-7.82	69.86
Dividend Per Share, 3 Yr. CAGR %	14.61	10.84	10.14	12.27	11.43
Compound Annual Growth Rate Over Five Years
Total Revenues, 5 Yr. CAGR %	4.21	8.27	10.87	9.88	9.82
Gross Profit, 5 Yr. CAGR %	3.95	10.02	13.76	12.2	12.06
EBITDA, 5 Yr. CAGR %	3.33	11.74	17.68	15.95	15.63
EBITA, 5 Yr. CAGR %	3.14	11.86	18	16.08	15.73
EBIT, 5 Yr. CAGR %	3.15	11.99	18.21	16.29	15.93
Earnings From Cont. Operations, 5 Yr. CAGR %	7.37	16.14	22.29	16.42	16.54
Net Income, 5 Yr. CAGR %	9.29	18.04	23.62	17.16	16.87
Normalized Net Income, 5 Yr. CAGR %	5.05	14.25	19.86	17.44	17.85
Diluted EPS Before Extra, 5 Yr. CAGR %	7.4	15.91	21.56	16.06	15.38
Accounts Receivable, 5 Yr. CAGR %	3.48	7.97	9.34	9.71	10.46
Inventory, 5 Yr. CAGR %	3	10.24	12.47	9.99	8.51
Net Property, Plant and Equip., 5 Yr. CAGR %	37.42	33.21	37.16	40.86	11.7
Total Assets, 5 Yr. CAGR %	6.79	10.48	11.25	11.53	11.87
Tangible Book Value, 5 Yr. CAGR %	16.66	17.43	11.22	13.98	18.56
Common Equity, 5 Yr. CAGR %	9.2	10.61	7.8	10.59	13.1
Cash From Operations, 5 Yr. CAGR %	19.12	4.41	13.29	26.93	18.15
Capital Expenditures, 5 Yr. CAGR %	-7.06	-10.19	14.81	15.64	11.06
Levered Free Cash Flow, 5 Yr. CAGR %	18.65	-8.51	5.54	31.15	31.42
Unlevered Free Cash Flow, 5 Yr. CAGR %	18.25	-8.62	5.3	30.87	31.03
Dividend Per Share, 5 Yr. CAGR %	19.85	16.2	13.2	11.84	10.51