Watsco,

Watsco, ROCE

Return on Capital Employed (ROCE) of Watsco, (WSO.B) as of Oct 28, 2026.

ROCE

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Last updated:

In 2026, Watsco,'s return on capital employed (ROCE) was -, a % increase from the - ROCE in the previous year.

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Watsco, Stock analysis

What does Watsco, do? Watsco, Inc. generates revenue by distributing air conditioning, heating, and refrigeration equipment, along with parts and supplies to contractors and dealers in the residential and light commercial markets. Its product range includes residential ducted and ductless air conditioners, gas, electric, and oil furnaces, commercial HVAC systems, and specialized equipment. The company also sells replacement compressors, evaporator coils, motors, thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and plumbing and bathroom remodeling supplies. These products are sold to contractors and dealers serving both replacement and new construction segments. Watsco's distribution network spans the United States, Canada, Latin America, and the Caribbean, focusing on the HVAC and refrigeration sectors. The company serves contractors and dealers who work in the replacement market for residential and light commercial systems, as well as those involved in new construction projects. By providing a comprehensive range of equipment, parts, and supplies, Watsco supports the needs of its customers across multiple market segments. The business model relies on direct sales to contractors and dealers who require a steady supply of HVAC and refrigeration components for their projects. Watsco's offerings cater to both the residential and light commercial sectors, with a focus on the replacement and new construction markets. Its product portfolio includes essential items like compressors, thermostats, and copper tubing, which are critical for system maintenance and installation. Watsco, is one of the most popular companies on Eulerpool.

ROCE Details

Unraveling Watsco,'s Return on Capital Employed (ROCE)

Watsco,'s Return on Capital Employed (ROCE) is a financial metric that measures the company's profitability and efficiency with respect to the capital employed. It is calculated by dividing earnings before interest and tax (EBIT) by the employed capital. A higher ROCE indicates that the company is effectively utilizing its capital to generate profits.

Year-to-Year Comparison

Analyzing Watsco,'s ROCE annually provides valuable insights into its efficiency in using its capital to generate profits. An increasing ROCE indicates improved profitability and operational efficiency, whereas a decrease might signal potential issues in capital utilization or business operations.

Impact on Investments

Watsco,'s ROCE is a critical factor for investors and analysts for evaluating the company’s efficiency and profitability. A higher ROCE can make the company an attractive investment, as it often signifies that the firm is generating adequate profits from its employed capital.

Interpreting ROCE Fluctuations

Changes in Watsco,’s ROCE are attributed to variations in EBIT or the capital employed. These fluctuations offer insights into the company’s operational efficiency, financial performance, and strategic financial management, assisting investors in making informed investment decisions.

Frequently Asked Questions about Watsco, stock

On Eulerpool you can find the complete historical development of Return on Capital Employed (ROCE) Watsco, since 2006 – with annual values, charts, and detailed analysis.

ROCE is a profitability measure and stands for Return on Capital Employed or the return on invested capital. The measure shows the ratio of operating profit to the interest-bearing capital employed. The higher the return on capital employed, the more profitable a company operates and the higher the important free cash flow. The free cash flow refers to the portion of profits that is not needed for expanding the company at the end of a period, but is available to shareholders.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Capital Employed (ROCE)'s Watsco, with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Capital Employed (ROCE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Capital Employed (ROCE).

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Profitability — Watsco,

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