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Watsco WSO Inventories

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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
Debt / equity0.2×0.0×
Current ratio3.3×+0.1×

Where this comes from

Reported directly by Watsco in its filing.

Tagged under the XBRL concept us-gaap:InventoryNet.

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 inventories?
Watsco (WSO) reported inventories of $1.72B in Q1 2026.
How has Watsco's inventories changed year-over-year?
Watsco's inventories decreased by 3.4% year-over-year, from $1.78B to $1.72B.
What is the long-term trend for Watsco's inventories?
Over 5 years (2020 to 2025), Watsco's inventories has grown at a 12.2% compound annual growth rate (CAGR), from $781.3M to $1.39B.
What does inventories mean?
The total value of all products and materials currently held by the company for sale or production.
How do you interpret inventories?
A decrease relative to sales suggests efficient inventory turnover, while a significant increase may signal slowing demand or potential obsolescence risks.
How does inventories compare across companies?
High inventory levels are typical for HVAC distributors to ensure product availability, making turnover ratios the primary peer comparison.