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| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | $5,055 | $6,280 | $7,274 | $7,284 | $7,618 |
| Gross Profit | $1,223 | $1,668 | $2,030 | $1,992 | $2,045 |
| Operating Income | $401 | $629 | $832 | $795 | $782 |
| Net Income | $270 | $419 | $601 | $536 | $536 |
Over the five-year period from 2020 to 2024, Watsco, Inc. demonstrated solid revenue expansion and maintained relatively strong profitability, although growth momentum slowed in the latter years. Revenues increased from approximately $5.05 billion in 2020 to $7.62 billion in 2024, reflecting overall expansion in the company’s market reach and customer base. Gross profit mirrored this trend by rising from $1.22 billion to over $2.04 billion, with notable increases of roughly 36% from 2020 to 2021 and 22% from 2021 to 2022. These early gains were followed by more modest fluctuations, as evidenced by a slight dip in gross profit in 2023 that recovered in 2024. Operating income and net income followed similar upward trajectories until 2022—where operating income peaked at about $831 million and net income reached over $601 million—but both metrics declined in the subsequent years, with operating income and net income stabilizing around $780 million and $536 million, respectively. While no single year experienced a dramatic swing exceeding 20%, the tapering of growth post-2022 suggests evolving pressures on margins. This performance is especially noteworthy given Watsco’s role in the HVAC/R distribution industry—a sector influenced by fluctuating energy costs and evolving environmental regulations. The early strong increases likely benefited from post-pandemic recovery and heightened demand in construction and industrial sectors, while later stabilization may reflect competitive pressures and operational costs. Overall, based on the income statement metrics provided, Watsco, Inc. appears financially healthy with sustainable revenue streams; however, management may need to focus on margin enhancement to rejuvenate growth in profitability moving forward.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.