Watsco (Watsco) EBIT : $751 Mil (TTM As of Mar. 2024)

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What is Watsco EBIT?

Watsco's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2024 was $121 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2024 was $751 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Watsco's annualized ROC % for the quarter that ended in Mar. 2024 was 13.35%. Watsco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 23.10%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Watsco's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 4.30%.

Watsco EBIT Historical Data

The historical data trend for Watsco's EBIT 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 EBIT Chart

Watsco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

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366.88

401.03

628.53

831.58

794.81

Watsco Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
EBIT	Get a 7-Day Free Trial															164.74	265.71	256.62	107.75	121.08

Competitive Comparison of Watsco's EBIT

For the Industrial Distribution subindustry, Watsco's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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's EV-to-EBIT Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Watsco's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Watsco's EV-to-EBIT falls into.

Watsco EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $751 Mil.

Watsco (NYSE:WSO.B) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Watsco's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	484.308 * ( 1 - 19.18% )	/	( (2907.323	+	2955.025)	/ 2 )
=	391.4177256	/	2931.174
=	13.35 %

where

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	3729.182	-	611.747	-	( 210.112	-	max(0, 712.012	-	2391.931	+	210.112	))
=	2907.323

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4357.118	-	923.229	-	( 478.864	-	max(0, 1026.126	-	2998.372	+	478.864	))
=	2955.025

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Watsco's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2023		Q: Mar. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	484.308	/	( ( (504.978 + max(1570.072, 0))	+	(521.92 + max(1596.279, 0)) )	/	2 )
=	484.308	/	( ( 2075.05	+	2118.199 )	/	2 )
=	484.308	/	2096.6245
=	23.10 %

where Working Capital is:

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(797.832	+	1347.289	+	36.698)	-	(611.747	+	0	+	0)
=	1570.072

	Working Capital		(Q: Mar. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(832.119	+	1655.635	+	31.754)	-	(923.229	+	0	+	0)
=	1596.279

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Watsco's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Mar. 2024 )
	=	751.147	/	17457.870
	=	4.30 %

Watsco EBIT Related Terms

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Watsco (Watsco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Watsco Inc (NYSE:WSO.B) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

WSO:USA WC30:Germany WC3:Germany WC3:Germany

Address

2665 South Bayshore Drive, Suite 901, Miami, FL, USA, 33133

Website

https://www.watsco.com

Watsco is the largest heating, ventilation, air-conditioning, and refrigeration products distributor in North America. The company primarily operates in the United States (91% of 2022 revenue) with significant exposure in the Sunbelt states. Watsco also has operations in Canada (5% of sales) and Latin America and the Caribbean (4% of sales). The company's customer base consists of more than 120,000 dealers and contractors that serve the replacement and new construction HVACR markets for residential and light commercial applications.