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	111.5%+4.3pp	110.5%+3.1pp	109.2%+1.4pp	108%-0.9pp	107.2%-2.7pp
Operating margin	40.3%-0.4pp	40.5%-0.4pp	40.8%-0.8pp	40.7%-2.1pp	40.7%-3.2pp
Net margin	27.8%-0.2pp	28%-0.1pp	28.1%-0.3pp	28.1%-1.5pp	28%-2.6pp
EBITDA margin	42.7%-0.1pp	42.8%-0.2pp	43.1%-0.6pp	42.9%-1.9pp	42.8%-2.9pp
Free cash flow margin	29.2%-6.0pp	25.7%-12.7pp	28%-7.8pp	29.9%-3.2pp	35.2%+7.3pp
Returns
Return on equity	75.3%-10.7pp	77.4%-11.3pp	81.1%-11.7pp	83.4%-16.8pp	86%-21.6pp
Return on assets	45.2%-4.3pp	46.4%-3.8pp	48.2%-3.7pp	48.9%-6.3pp	49.6%-8.0pp
Return on invested capital	80.6%-8.3pp	82.7%-8.0pp	85.8%-8.1pp	87.5%-19.2pp	88.9%-28.5pp
Efficiency
Asset turnover	6.5×-0.6×	6.6×-0.5×	6.9×-0.4×	7×-0.5×	7.1×-0.5×
Inventory turnover	13.2×-1.0×	13.4×-0.7×	13.7×-0.2×	13.9×-0.2×	14.1×+0.1×
Liquidity
Current ratio	14.4×+1.4×	14.3×+1.7×	13.3×+0.5×	12.9×+0.3×	13×+0.6×
Quick ratio	6.8×+0.6×	6.7×+0.4×	6.2×+0.2×	6×+0.3×	6.3×+0.9×
Cash ratio	1.7×+0.1×	1.7×+0.4×	1.7×+0.6×	1.6×+0.6×	1.6×+0.6×
Leverage
Debt-to-equity	0.9×0.0×	0.9×0.0×	0.9×0.0×	0.8×-0.1×	0.8×-0.3×
Debt-to-assets	0.5×0.0×	0.5×0.0×	0.5×0.0×	0.5×0.0×	0.5×-0.1×
Net debt / EBITDA	1.2×+0.3×	1.1×+0.1×	0.9×-0.4×	0.9×-0.6×	0.9×-1.0×
Valuation
Market capitalization	$62.3B-17.2%	$68.07B-3.6%	$73.54B+7.6%	$75.6B+18.7%	$75.21B+24.3%
Enterprise value	$63.25B-16.7%	$68.95B-3.5%	$74.27B+6.9%	$76.33B+17.5%	$75.97B+22.3%
Price / earnings	121.5×-21.0×	130.6×-4.2×	138.7×+8.1×	142.7×+24.1×	142.6×+32.7×
Price / sales	8.5×-1.5×	9.1×-0.3×	9.8×+0.5×	10×+1.3×	10×+1.7×
Price / book	22.4×-5.9×	24.8×-2.1×	27.1×-0.2×	28.1×+1.5×	28.3×+1.4×
EV / EBITDA	80.5×-13.7×	86.4×-2.7×	91.6×+5.1×	94.3×+14.9×	94.2×+19.2×
EV / sales	8.6×-1.5×	9.3×-0.3×	9.9×+0.4×	10.1×+1.2×	10.1×+1.5×
Free cash flow yield	14%-0.2pp	11.6%-4.7pp	11.5%-4.0pp	12%-3.2pp	14.3%+1.0pp
Earnings yield	13.2%+2.0pp	12.4%+0.5pp	11.6%-0.7pp	11.3%-2.5pp	11.3%-3.6pp
Dividend yield	12.1%+3.2pp	11%+1.8pp	9.7%+0.5pp	9.1%-0.6pp	8.9%-1.1pp

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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.