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Watsco WSO Debt-to-equity

Debt-to-equity at other companies

Lennox International logo
Lennox InternationalLII
1.4×-0.2×
Trane Technologies logo
Trane TechnologiesTT
0.5×-0.2×
Ferguson Enterprises logo
Ferguson EnterprisesFERG
-0.1×
Carrier Global logo
Carrier GlobalCARR
0.9×+0.1×
EMCOR Group logo
EMCOR GroupEME
0.1×0.0×
Comfort Systems USA logo
Comfort Systems USAFIX
0.1×0.0×

Other financials

Income statement

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Revenue$1.5B+0.1%
Gross profit$427.6M-0.5%
Operating income$110.2M-1.8%
Net income$79.1M-1.2%
EPS (diluted)$1.87-3.1%

Balance sheet

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Cash & equivalents$392.7M-9.1%
Total debt$496.3M+4.8%
Total equity$2.8B+3.6%
Total assets$4.6B+4.4%

Cash flow

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Operating cash flow-$18.9M+89.4%
CapEx$7.0M-7.7%
Free cash flow-$25.9M+86.0%

Valuation

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Market cap$16.52B-28.1%
Enterprise value$16.62B-27.7%
P/E33.3×-10.1×
P/S2.3×-0.7×

Profitability

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Gross margin28%+1.1pp
Operating margin9.9%-0.2pp
Net margin6.8%-0.1pp

Returns & leverage

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Return on equity18.3%-2.1pp
Current ratio3.3×+0.1×

Where this comes from

Calculated from Watsco’s reported figures.

Based on the most recent quarter.

The official record: Watsco’s 10-Q, filed May 8, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Watsco's debt-to-equity?
Watsco (WSO) reported debt-to-equity of 0.2× in Q1 2026.
How has Watsco's debt-to-equity changed year-over-year?
Watsco's debt-to-equity increased by 1.1% year-over-year, from 0.2× to 0.2×.
What is the long-term trend for Watsco's debt-to-equity?
Over 4 years (2021 to 2025), Watsco's debt-to-equity has grown at a -3.5% compound annual growth rate (CAGR), from 1× to 0.9×.
What does debt-to-equity mean?
How much debt the company carries for every dollar of shareholder equity.
How do you interpret debt-to-equity?
Lower is generally safer, but moderate leverage can boost returns. Read in the context of cash-flow stability — a utility tolerates more debt than a cyclical. Negative equity makes the ratio meaningless and it is suppressed there.
How does debt-to-equity compare across companies?
Comparable within an industry; capital structures differ sharply across sectors. Not meaningful for banks.