What are Watsco's profit margins?

Watsco (WSO) runs a 28.0% gross margin and a 9.9% operating margin, with a 6.8% net margin.

Where do Watsco's ratios come from?

Every ratio is computed from Watsco's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.

Watsco WSO Ratios & Valuation

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY QoQ

Simplified Detailed

	TTM Q1 '26	TTM Q4 '25	TTM Q3 '25	TTM Q2 '25	TTM Q1 '25
Profitability
Gross margin	28%0.0pp	28%+0.1pp	27.9%+0.4pp	27.5%+0.6pp	26.9%+0.1pp
Operating margin	9.9%0.0pp	10%-0.2pp	10.2%-0.1pp	10.3%+0.1pp	10.1%-0.1pp
Net margin	6.8%0.0pp	6.9%-0.2pp	7%0.0pp	7.1%+0.1pp	7%-0.1pp
EBITDA margin	10.5%0.0pp	10.6%-0.2pp	10.8%-0.1pp	10.8%+0.2pp	10.7%-0.1pp
Free cash flow margin	9.6%+2.2pp	7.4%+0.4pp	7%+1.7pp	5.3%-0.8pp	6.1%-3.7pp
Returns
Return on equity	18.3%0.0pp	18.3%-0.7pp	18.9%-0.8pp	19.8%-0.6pp	20.4%-1.6pp
Return on assets	10.9%-0.3pp	11.2%-0.3pp	11.5%-0.1pp	11.7%-0.4pp	12%-1.1pp
Return on invested capital	20.5%+2.4pp	18.1%-2.6pp	20.7%-0.6pp	21.3%-1.3pp	22.6%+1.4pp
Efficiency
Asset turnover	1.6×0.0×	1.6×0.0×	1.6×0.0×	1.6×-0.1×	1.7×-0.1×
Inventory turnover	3×-0.8×	3.8×+0.4×	3.3×+0.3×	3.1×-0.1×	3.2×-0.9×
Liquidity
Current ratio	3.3×-0.8×	4.1×+0.3×	3.8×+0.8×	3.1×-0.2×	3.3×+0.2×
Quick ratio	1.5×-0.6×	2.2×+0.3×	1.9×+0.6×	1.3×-0.1×	1.4×-0.4×
Cash ratio	0.4×-0.2×	0.6×+0.2×	0.4×+0.1×	0.3×-0.2×	0.5×-0.1×
Leverage
Debt-to-equity	0.2×-0.2×	0.3×+0.2×	0.2×0.0×	0.2×0.0×	0.2×-0.2×
Debt-to-assets	0.1×-0.1×	0.2×+0.1×	0.1×0.0×	0.1×0.0×	0.1×-0.1×
Net debt / EBITDA	0.1×-0.6×	0.7×+0.5×	0.2×0.0×	0.2×+0.2×	0.1×-0.4×
Valuation
Market capitalization	$14.77B+8.1%	$13.67B-16.6%	$16.39B-6.2%	$17.47B-14.9%	$20.54B+7.3%
Enterprise value	$14.87B+4.8%	$14.19B-14.2%	$16.54B-6.3%	$17.64B-14.3%	$20.58B+5.5%
Price / earnings	29.8×+2.3×	27.5×-3.9×	31.4×-1.5×	32.9×-5.9×	38.8×+3.1×
Price / sales	2×+0.2×	1.9×-0.3×	2.2×-0.1×	2.3×-0.4×	2.7×+0.2×
Price / book	5.3×+0.4×	4.9×-0.9×	5.8×-0.5×	6.3×-1.4×	7.7×+0.5×
EV / EBITDA	19.5×+0.9×	18.6×-2.1×	20.7×-1.0×	21.7×-3.7×	25.4×+1.7×
EV / sales	2.1×+0.1×	2×-0.3×	2.2×-0.1×	2.4×-0.4×	2.7×+0.2×
Free cash flow yield	4.7%+0.8pp	3.9%+0.8pp	3.2%+0.9pp	2.3%0.0pp	2.2%-1.6pp
Earnings yield	3.4%-0.3pp	3.6%+0.5pp	3.2%+0.1pp	3%+0.5pp	2.6%-0.2pp
Dividend yield	3.3%-0.2pp	3.5%+0.7pp	2.8%+0.2pp	2.6%+0.4pp	2.1%-0.1pp

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Questions, answered.

What are Watsco's profit margins?: Watsco (WSO) runs a 28.0% gross margin and a 9.9% operating margin, with a 6.8% net margin.
Where do Watsco's ratios come from?: Every ratio is computed from Watsco's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.