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Watsco Operating Margin %

: 10.96% (As of Mar. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Watsco's Operating Income for the three months ended in Mar. 2022 was $167 Mil. Watsco's Revenue for the three months ended in Mar. 2022 was $1,524 Mil. Therefore, Watsco's Operating Margin % for the quarter that ended in Mar. 2022 was 10.96%.

Good Sign:

Watsco Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Watsco's Operating Margin % or its related term are showing as below:

WSO' s Operating Margin % Range Over the Past 10 Years
Min: 6.55   Med: 7.87   Max: 10.48
Current: 10.48


WSO's Operating Margin % is ranked better than
78.81% of 151 companies
in the Industrial Distribution industry
Industry Median: 5.36 vs WSO: 10.48

Watsco's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.

Watsco's Operating Income for the three months ended in Mar. 2022 was $167 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2022 was $699 Mil.


Watsco Operating Margin % Historical Data

The historical data trend for Watsco's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Watsco Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.06 7.98 7.48 7.71 9.70

Watsco Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.80 11.42 11.26 7.94 10.96

Competitive Comparison

For the Industrial Distribution subindustry, Watsco's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Watsco Operating Margin % Distribution

For the Industrial Distribution industry and Industrials sector, Watsco's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Watsco's Operating Margin % falls into.



Watsco Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Watsco's Operating Margin % for the fiscal year that ended in Dec. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=609.229 / 6280.192
=9.70 %

Watsco's Operating Margin % for the quarter that ended in Mar. 2022 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2022 ) / Revenue (Q: Mar. 2022 )
=167.004 / 1523.57
=10.96 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Watsco  (NYSE:WSO) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Watsco Operating Margin % Related Terms

Thank you for viewing the detailed overview of Watsco's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Watsco Business Description

Watsco logo
Industry
Industrials » Industrial Distribution NAICS : 423730 SIC : 5075
Address
2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133
Watsco Inc is a distributor of heating, ventilation, and air-conditioning units. With more than 660 locations in 42 states, it serves more than 120000 contractors and dealers. About 70% of revenue is derived from the residential HVAC replacement market, with the residual coming from new construction.
Executives
Sape George director 2665 S BAYSHORE DRIVE STE 901 C/O WATSCO INC COCONUT GROVE FL 33131
Keeley Brian E. director 2665 S. BAYSHORE DRIVE SUITE 901 MIAMI FL 33133
Rubin Steven director 2665 S. BAYSHORE DRIVE SUITE 901 MIAMI FL 33133
Dickins Denise director 1867 TRAVIS CIRCLE WEST PALM BEACH FL 33406
Alvarez Cesar L director C/O PEDIATRIX MEDICAL GROUP LEGAL DEPT 1301- CONCORD TERRACE SUNRISE FL 33323
Moss Bob L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MOSS BOB L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Custer John Michael director 2665 S. BAYSHORE DRIVE SUITE 901 MIAMI FL 33133
Nahmad Albert H director, officer: Chairman and CEO PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: NAHMAD ALBERT H a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Menendez Ana M officer: CFO / Treasurer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MENENDEZ ANA M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Logan Barry S officer: Executive Vice President PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: LOGAN BARRY S a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Nahmad Aaron J director, officer: President 2665 S. BAYSHORE DRIVE, SUITE 901 COCONUT GROVE FL 33133
Rush Stephen F. officer: EVP and COO 2665 S. BAYSHORE DRIVE SUITE 901 MIAMI FL 33133
Epstein Jason director % COLUMBUS ACQUISITION CORP 153 EAST 53RD STREET 58TH FLOOR NEW YORK NY 10022
Watsco Inc director 2665 SOUTH BAYSHORE DR, STE 901 COCONUT GROVE FL 33133
Darnell David C. director 100 NORTH TRYON STREET CHARLOTTE NC 28255

Watsco Headlines

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