Watsco (WSO) Financial Ratios: P/E, ROE & More

Watsco (WSO) Financial Ratios

For fiscal 2025 (fiscal year ended Dec 31, 2025), Watsco had a P/E ratio of 27.56 (down from 36.44), return on equity of 18.7% (down from 22.4%), debt-to-equity of 0.15 (up from 0.15) and a current ratio of 4.12 (up from 3.13). A current ratio of 4.12 means current assets exceed current liabilities. Its dividend yield was 3.56% with a payout ratio of 95.3%.

Watsco Financial Ratios Analysis

Valuation, profitability, leverage, and liquidity ratios

Income Statement Balance Sheet Cash Flow Ratios

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Breakdown	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Period ending	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Valuation Ratios
P/E Ratio	27.56	36.44	31.51	16.03	28.96	32.59
Forward P/E	26.43	33.09	28.91	18.29	29.35	31.69
P/S Ratio	1.77	2.39	2.16	1.21	1.76	1.59
P/B Ratio	3.97	5.93	6.01	3.92	5.53	4.51
Price/Tangible Book	6.07	9.11	10.12	6.87	10.59	8.88
Price/FCF	23.91	24.47	29.89	16.44	34.10	15.51
Price/OCF	22.46	23.51	28.00	15.41	31.62	15.03
PEG Ratio	3.02	3.02	3.20	2.20	2.94	1.18
Enterprise Value Ratios
EV/Revenue	1.82	2.43	2.26	1.30	1.84	1.68
EV/EBITDA	17.91	23.48	20.45	11.20	18.14	20.39
EV/EBIT	19.03	24.76	21.38	11.64	18.98	21.74
EV/FCF	24.69	24.93	31.32	17.58	35.69	16.38
Profitability & Returns
Return on Equity (ROE)	18.69%	22.38%	26.07%	33.15%	26.41%	18.50%
Return on Assets (ROA)	9.76%	11.39%	13.36%	15.40%	13.68%	9.68%
Return on Invested Capital (ROIC)	19.41%	21.39%	23.36%	28.99%	23.64%	16.30%
Return on Capital Employed (ROCE)	18.80%	21.40%	25.60%	31.40%	25.80%	19.50%
Leverage & Solvency Ratios
Debt/Equity	0.15	0.15	0.15	0.17	0.18	0.12
Debt/EBITDA	0.54	0.48	0.44	0.41	0.50	0.43
Debt/FCF	0.90	0.60	0.77	0.73	1.14	0.42
Liquidity Ratios
Current Ratio	4.12	3.13	3.36	2.54	2.70	3.05
Quick Ratio	2.13	1.69	1.42	0.99	1.12	1.40
Efficiency Ratios
Asset Turnover	1.63	1.86	2.02	2.21	2.25	2.01
Inventory Turnover	3.76	4.08	3.90	4.22	4.86	4.50
Yield & Distribution Ratios
Earnings Yield	3.89%	2.95%	3.41%	6.82%	3.79%	3.36%
FCF Yield	4.18%	4.09%	3.35%	6.08%	2.93%	6.45%
Dividend Yield	3.56%	2.34%	2.46%	3.80%	2.79%	3.54%
Payout Ratio	95.33%	78.97%	71.34%	55.30%	70.30%	98.57%
Buyback Yield	-1.04%	-2.68%	-2.38%	-0.73%	-0.78%	-1.37%
Total Return	2.52%	-0.34%	0.09%	3.07%	2.01%	2.17%

Source: Company financial statements from annual and quarterly filings. Data as of Jun 30, 2026. Data sources and methodology

Frequently Asked Questions About Watsco Financial Ratios

What is Watsco's P/E ratio?

Watsco's P/E ratio was 27.56 for fiscal 2025 (period ended Dec 31, 2025). It was 36.44 a year earlier.

What is Watsco's return on equity?

Watsco's return on equity (ROE) was 18.7% for fiscal 2025 (period ended Dec 31, 2025). It was 22.4% a year earlier.

What is Watsco's debt-to-equity ratio?

Watsco's debt-to-equity ratio was 0.15 for fiscal 2025 (period ended Dec 31, 2025). It was 0.15 a year earlier.

What is return on equity (ROE)?

Return on equity is net income divided by shareholders' equity. It measures how much profit a company generates from the capital its shareholders have invested. Full definition