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Watsco WSO Provision for Credit Losses

Provision for Credit Losses at other companies

Lennox International logo
Lennox InternationalLII
$2.1M+61.5%
Mueller Industries logo
Mueller IndustriesMLI
$861K+770%
Dover logo
DoverDOV
$2.2M+65.5%

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:ProvisionForDoubtfulAccounts.

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 provision for credit losses?
Watsco (WSO) reported provision for credit losses of $1.8M in Q1 2026.
How has Watsco's provision for credit losses changed year-over-year?
Watsco's provision for credit losses increased by 113.8% year-over-year, from $840K to $1.8M.
What is the long-term trend for Watsco's provision for credit losses?
Over 3 years (2021 to 2025), Watsco's provision for credit losses has grown at a -8.2% compound annual growth rate (CAGR), from $6.89M to $5.34M.
What does provision for credit losses mean?
An accounting estimate of potential losses from uncollectible customer invoices.
How do you interpret provision for credit losses?
An increase suggests deteriorating customer credit quality or a more conservative approach to risk management.
How does provision for credit losses compare across companies?
Standard for companies with significant credit sales; peers in distribution or retail should have similar provisions.