Watsco Operating Income vs Ebit Analysis

WSO Stock

USD 366.99 111.00 23.22%

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 Operating Income and its Ebit 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 state.

Operating Income vs Ebit

Operating Income vs Ebit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Watsco Inc Operating Income account and Ebit. At this time, the significance of the direction appears to have totally related.

The correlation between Watsco's Operating Income and Ebit is 1.0. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Ebit 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 Operating Income and Ebit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of Watsco Inc are associated (or correlated) with its Ebit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Ebit has no effect on the direction of Operating Income i.e., Watsco's Operating Income and Ebit go up and down completely randomly.

Correlation Coefficient

1.0

Relationship Direction	Positive
Relationship Strength	Very Strong

View All Relationships

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.

Ebit

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 state.

At this time, Watsco's Selling General Administrative is very stable compared to the past year. As of the 16th of June 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 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	Property Plant And Equipment Gross	Common Stock Total Equity	Common Stock
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	0.5	0.72	0.99	0.94	0.97	0.96	1.0	0.83	0.55	0.96	0.82	0.75	0.76
Short Long Term Debt Total	0.79		0.63	0.72	0.68	0.72	0.88	0.67	0.64	0.8	-0.42	0.64	0.78	0.36	0.97	0.77	0.77	0.67	0.9	0.77	0.65	0.66	0.74	0.66	0.62	0.6
Other Current Liab	0.84	0.63		0.9	0.83	0.87	0.31	0.84	0.81	0.8	-0.41	0.81	0.81	0.15	0.49	0.85	0.77	0.78	0.83	0.85	0.87	0.22	0.89	0.73	0.48	0.43
Total Current Liabilities	0.95	0.72	0.9		0.93	0.92	0.38	0.92	0.86	0.93	-0.46	0.86	0.94	0.41	0.59	0.96	0.88	0.91	0.94	0.96	0.91	0.46	1.0	0.75	0.64	0.68
Total Stockholder Equity	0.99	0.68	0.83	0.93		0.92	0.3	0.98	0.92	0.97	-0.19	0.92	0.97	0.47	0.63	0.98	0.91	0.98	0.91	0.98	0.81	0.46	0.93	0.84	0.72	0.73
Property Plant And Equipment Net	0.92	0.72	0.87	0.92	0.92		0.35	0.91	0.92	0.93	-0.38	0.92	0.87	0.18	0.61	0.9	0.81	0.88	0.9	0.91	0.95	0.3	0.91	0.87	0.52	0.51
Net Debt	0.45	0.88	0.31	0.38	0.3	0.35		0.29	0.2	0.46	-0.42	0.2	0.46	0.32	0.89	0.45	0.49	0.3	0.63	0.43	0.33	0.64	0.41	0.31	0.48	0.45
Retained Earnings	0.96	0.67	0.84	0.92	0.98	0.91	0.29		0.9	0.94	-0.27	0.9	0.96	0.4	0.6	0.97	0.93	0.92	0.89	0.97	0.82	0.37	0.92	0.88	0.69	0.66
Cash	0.9	0.64	0.81	0.86	0.92	0.92	0.2	0.9		0.91	-0.2	1.0	0.86	0.21	0.56	0.86	0.81	0.89	0.83	0.89	0.81	0.34	0.87	0.86	0.51	0.51
Non Current Assets Total	0.99	0.8	0.8	0.93	0.97	0.93	0.46	0.94	0.91		-0.25	0.91	0.97	0.49	0.74	0.97	0.91	0.97	0.96	0.98	0.83	0.57	0.94	0.82	0.72	0.76
Non Currrent Assets Other	-0.28	-0.42	-0.41	-0.46	-0.19	-0.38	-0.42	-0.27	-0.2	-0.25		-0.2	-0.26	0.06	-0.25	-0.32	-0.34	-0.1	-0.42	-0.29	-0.62	-0.06	-0.45	-0.3	-0.06	-0.07
Cash And Short Term Investments	0.9	0.64	0.81	0.86	0.92	0.92	0.2	0.9	1.0	0.91	-0.2		0.86	0.21	0.56	0.86	0.81	0.89	0.83	0.89	0.81	0.34	0.87	0.86	0.51	0.51
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	0.73	0.99	0.96	0.95	0.95	0.99	0.77	0.59	0.95	0.77	0.79	0.81
Common Stock Shares Outstanding	0.5	0.36	0.15	0.41	0.47	0.18	0.32	0.4	0.21	0.49	0.06	0.21	0.58		0.42	0.51	0.53	0.54	0.46	0.51	0.12	0.81	0.44	0.07	0.8	0.93
Non Current Liabilities Total	0.72	0.97	0.49	0.59	0.63	0.61	0.89	0.6	0.56	0.74	-0.25	0.56	0.73	0.42		0.7	0.72	0.63	0.83	0.71	0.48	0.72	0.62	0.61	0.66	0.62
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	0.7		0.94	0.95	0.96	1.0	0.82	0.53	0.96	0.82	0.76	0.76
Other Current Assets	0.94	0.77	0.77	0.88	0.91	0.81	0.49	0.93	0.81	0.91	-0.34	0.81	0.96	0.53	0.72	0.94		0.85	0.91	0.95	0.74	0.53	0.9	0.77	0.76	0.74
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	0.63	0.95	0.85		0.89	0.96	0.77	0.54	0.91	0.75	0.71	0.79
Total Liab	0.96	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	0.83	0.96	0.91	0.89		0.96	0.83	0.61	0.95	0.77	0.72	0.73
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	0.71	1.0	0.95	0.96	0.96		0.82	0.54	0.96	0.82	0.75	0.76
Short Term Debt	0.83	0.65	0.87	0.91	0.81	0.95	0.33	0.82	0.81	0.83	-0.62	0.81	0.77	0.12	0.48	0.82	0.74	0.77	0.83	0.82		0.21	0.88	0.78	0.4	0.43
Intangible Assets	0.55	0.66	0.22	0.46	0.46	0.3	0.64	0.37	0.34	0.57	-0.06	0.34	0.59	0.81	0.72	0.53	0.53	0.54	0.61	0.54	0.21		0.5	0.2	0.78	0.83
Accounts Payable	0.96	0.74	0.89	1.0	0.93	0.91	0.41	0.92	0.87	0.94	-0.45	0.87	0.95	0.44	0.62	0.96	0.9	0.91	0.95	0.96	0.88	0.5		0.75	0.67	0.7
Property Plant And Equipment Gross	0.82	0.66	0.73	0.75	0.84	0.87	0.31	0.88	0.86	0.82	-0.3	0.86	0.77	0.07	0.61	0.82	0.77	0.75	0.77	0.82	0.78	0.2	0.75		0.52	0.36
Common Stock Total Equity	0.75	0.62	0.48	0.64	0.72	0.52	0.48	0.69	0.51	0.72	-0.06	0.51	0.79	0.8	0.66	0.76	0.76	0.71	0.72	0.75	0.4	0.78	0.67	0.52		0.86
Common Stock	0.76	0.6	0.43	0.68	0.73	0.51	0.45	0.66	0.51	0.76	-0.07	0.51	0.81	0.93	0.62	0.76	0.74	0.79	0.73	0.76	0.43	0.83	0.7	0.36	0.86

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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	3.8B	4.0B
Short Long Term Debt Total	310.0M	211.3M	360.5M	379.1M	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	1.4B	1.5B
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	451.5M	474.1M
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	128.6M
Accounts Payable	239.7M	251.6M	364.2M	456.1M	369.4M	387.9M
Property Plant And Equipment Gross	321.9M	98.2M	111.0M	442.7M	726.3M	762.6M
Accumulated Other Comprehensive Income	(39.1M)	(34.9M)	(34.2M)	(47.7M)	(42.3M)	(40.2M)
Common Stock Total Equity	21.5M	18.9M	21.8M	21.8M	25.1M	20.5M
Common Stock	21.5M	21.7M	21.8M	21.8M	22.1M	20.8M
Other Liab	67.7M	77.9M	85.7M	89.9M	103.4M	108.5M
Other Assets	9.1M	6.2M	6.4M	8.0M	1.0	0.95
Long Term Debt	312.0M	144.3M	285.2M	243.5M	15.4M	14.6M
Good Will	411.2M	412.5M	434.0M	430.7M	457.1M	329.3M
Property Plant Equipment	98.5M	98.2M	111.0M	442.7M	509.1M	534.6M
Net Tangible Assets	852.2M	1.5B	1.7B	1.3B	1.5B	809.0M
Noncontrolling Interest In Consolidated Entity	279.3M	293.1M	332.5M	359.0M	412.9M	348.7M
Retained Earnings Total Equity	632.5M	636.4M	760.8M	1.0B	1.2B	629.3M

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Additional Information and Resources on Investing in Watsco Stock

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:

How To Invest In Watsco

Details

Is Watsco Stock a good investment?

Details

What is Watsco's Net Worth?

Details

Largest Trading Companies & Distributors Companies

View

Largest Industrial Distribution Companies

View

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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

(0.23)

Dividend Share

9.8

Earnings Share

Revenue Per Share

199.528

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.

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Watsco Operating Income vs Ebit Analysis

Operating Income vs Ebit

Operating Income vs Ebit Correlation Analysis

Correlation Coefficient

Operating Income

Ebit

Watsco fundamental ratios Correlations

Watsco Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Watsco fundamental ratios Accounts

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

Additional Information and Resources on Investing in Watsco Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

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
Total Liab	- 0.42	Non Currrent Assets Other
Non Currrent Assets Other	- 0.42	Net Debt
Non Currrent Assets Other	- 0.42	Short Long Term Debt Total