Watsco Interest Expense vs Net Income Analysis

WSO Stock  USD 443.21  0.79  0.18%   
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 Interest Expense and its Net Income 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 tightly coupled with the direction of predictive economic indicators such as signals in state.

Interest Expense vs Net Income

Interest Expense vs Net Income Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Watsco Inc Interest Expense account and Net Income. At this time, the significance of the direction appears to have significant contrarian relationship.
The correlation between Watsco's Interest Expense and Net Income is -0.27. Overlapping area represents the amount of variation of Interest Expense that can explain the historical movement of Net Income 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 Interest Expense and Net Income is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Interest Expense of Watsco Inc are associated (or correlated) with its Net Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Net Income has no effect on the direction of Interest Expense i.e., Watsco's Interest Expense and Net Income go up and down completely randomly.

Correlation Coefficient

-0.27
Relationship DirectionNegative 
Relationship StrengthInsignificant

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Watsco Inc financial statement analysis. It represents the amount of money remaining after all of Watsco Inc operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.
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 tightly coupled with the direction of predictive economic indicators such as signals in state.
At this time, Watsco's Selling General Administrative is very stable compared to the past year. As of the 28th of April 2024, Sales General And Administrative To Revenue is likely to grow to 0.20, while Tax Provision is likely to drop about 109.6 M.
 2021 2022 2023 2024 (projected)
Interest Expense996K2.2M4.9M5.4M
Depreciation And Amortization28.1M31.7M35.1M36.8M

Watsco fundamental ratios Correlations

0.790.840.950.990.920.450.960.90.99-0.280.90.990.50.720.990.940.970.961.00.830.550.960.820.750.76
0.790.630.720.680.720.880.670.640.8-0.420.640.780.360.970.770.770.670.90.770.650.660.740.660.620.6
0.840.630.90.830.870.310.840.810.8-0.40.810.810.150.490.850.770.780.830.850.870.220.890.730.480.43
0.950.720.90.930.920.380.920.860.93-0.460.860.940.410.590.960.880.910.940.960.910.461.00.750.640.68
0.990.680.830.930.920.30.980.920.97-0.190.920.970.470.630.980.910.980.910.980.810.460.930.840.720.73
0.920.720.870.920.920.350.910.920.93-0.380.920.870.180.610.90.810.880.90.910.950.30.910.870.520.51
0.450.880.310.380.30.350.290.20.46-0.420.20.460.320.890.450.490.30.630.430.330.640.410.310.480.45
0.960.670.840.920.980.910.290.90.94-0.270.90.960.40.60.970.930.920.890.970.820.370.920.880.690.66
0.90.640.810.860.920.920.20.90.91-0.21.00.860.210.560.860.810.890.830.890.810.340.870.860.510.51
0.990.80.80.930.970.930.460.940.91-0.250.910.970.490.740.970.910.970.960.980.830.570.940.820.720.76
-0.28-0.42-0.4-0.46-0.19-0.38-0.42-0.27-0.2-0.25-0.2-0.250.06-0.25-0.32-0.34-0.1-0.42-0.29-0.62-0.06-0.45-0.3-0.06-0.07
0.90.640.810.860.920.920.20.91.00.91-0.20.860.210.560.860.810.890.830.890.810.340.870.860.510.51
0.990.780.810.940.970.870.460.960.860.97-0.250.860.580.730.990.960.950.950.990.770.590.950.770.790.81
0.50.360.150.410.470.180.320.40.210.490.060.210.580.420.510.530.540.460.510.120.810.440.070.80.93
0.720.970.490.590.630.610.890.60.560.74-0.250.560.730.420.70.720.630.830.710.480.720.620.610.660.62
0.990.770.850.960.980.90.450.970.860.97-0.320.860.990.510.70.940.950.961.00.820.530.960.820.760.76
0.940.770.770.880.910.810.490.930.810.91-0.340.810.960.530.720.940.850.910.950.740.530.90.770.760.74
0.970.670.780.910.980.880.30.920.890.97-0.10.890.950.540.630.950.850.890.960.770.540.910.750.710.79
0.960.90.830.940.910.90.630.890.830.96-0.420.830.950.460.830.960.910.890.960.830.610.950.770.720.73
1.00.770.850.960.980.910.430.970.890.98-0.290.890.990.510.711.00.950.960.960.820.540.960.820.750.76
0.830.650.870.910.810.950.330.820.810.83-0.620.810.770.120.480.820.740.770.830.820.210.880.780.40.43
0.550.660.220.460.460.30.640.370.340.57-0.060.340.590.810.720.530.530.540.610.540.210.50.20.780.83
0.960.740.891.00.930.910.410.920.870.94-0.450.870.950.440.620.960.90.910.950.960.880.50.750.670.7
0.820.660.730.750.840.870.310.880.860.82-0.30.860.770.070.610.820.770.750.770.820.780.20.750.520.36
0.750.620.480.640.720.520.480.690.510.72-0.060.510.790.80.660.760.760.710.720.750.40.780.670.520.86
0.760.60.430.680.730.510.450.660.510.76-0.070.510.810.930.620.760.740.790.730.760.430.830.70.360.86
Click cells to compare fundamentals

Watsco Account Relationship Matchups

Watsco fundamental ratios Accounts

201920202021202220232024 (projected)
Total Assets2.6B2.5B3.1B3.5B3.8B4.0B
Short Long Term Debt Total310.0M211.3M360.5M379.1M404.8M425.0M
Other Current Liab69.4M71.8M278.0M303.4M242.4M254.5M
Total Current Liabilities461.7M499.7M726.7M906.5M712.0M747.6M
Total Stockholder Equity1.4B1.5B1.7B1.9B2.2B2.3B
Property Plant And Equipment Net321.9M307.4M379.5M442.7M505.0M530.2M
Net Debt235.5M65.3M242.3M231.6M194.7M204.4M
Retained Earnings632.5M636.4M760.8M1.0B1.2B1.2B
Cash74.5M146.1M118.3M147.5M210.1M220.6M
Non Current Assets Total1.0B999.9M1.1B1.2B1.4B1.5B
Non Currrent Assets Other9.5M12.2M9.2M(173.9M)8.2M5.2M
Cash And Short Term Investments74.5M146.1M118.3M147.5M210.1M220.6M
Net Receivables533.8M535.3M698.5M747.1M797.8M837.7M
Common Stock Shares Outstanding34.7M35.2M35.4M35.7M36.5M27.7M
Liabilities And Stockholders Equity2.6B2.5B3.1B3.5B3.8B4.0B
Non Current Liabilities Total379.7M217.4M361.7M333.4M451.5M474.1M
Inventory920.8M793.9M1.1B1.4B1.3B1.4B
Other Current Assets17.7M21.8M29.2M34.0M36.7M38.5M
Other Stockholder Equity820.4M863.5M916.5M885.6M1.1B1.1B
Total Liab841.4M717.2M1.1B1.2B1.2B1.2B
Total Current Assets1.5B1.5B2.0B2.3B2.4B2.5B
Short Term Debt69.4M71.8M84.5M147.0M100.3M105.3M
Intangible Assets172.0M169.9M186.9M175.2M218.1M128.6M
Accounts Payable239.7M251.6M364.2M456.1M369.4M387.9M
Property Plant And Equipment Gross321.9M98.2M111.0M442.7M726.3M762.6M
Accumulated Other Comprehensive Income(39.1M)(34.9M)(34.2M)(47.7M)(42.3M)(40.2M)
Common Stock Total Equity21.5M18.9M21.8M21.8M25.1M20.5M
Common Stock21.5M21.7M21.8M21.8M22.1M20.8M
Other Liab67.7M77.9M85.7M89.9M103.4M108.5M
Other Assets9.1M6.2M6.4M8.0M1.00.95
Long Term Debt312.0M144.3M285.2M243.5M15.4M14.6M
Good Will411.2M412.5M434.0M430.7M457.1M329.3M
Property Plant Equipment98.5M98.2M111.0M442.7M509.1M534.6M
Net Tangible Assets852.2M1.5B1.7B1.3B1.5B809.0M
Noncontrolling Interest In Consolidated Entity279.3M293.1M332.5M359.0M412.9M348.7M
Retained Earnings Total Equity632.5M636.4M760.8M1.0B1.2B629.3M

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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:
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 tightly coupled with the direction of predictive economic indicators such as signals in state.
You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.

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Is Watsco's industry 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
(0.23)
Dividend Share
9.8
Earnings Share
12.85
Revenue Per Share
199.508
Quarterly Revenue Growth
0.009
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.