Watsco (WSO) Margins & Profitability 2018-2026

Gross, EBITDA, operating, and net margin trends

Margins

Profit margins across the income statement

Gross Margin: 27.9%
EBITDA Margin: 7.9%
Op. Margin: 7.2%
Net Margin: 5.2%

Op. margin of 7.2% is down 4.4% YoY — costs are rising relative to revenue. Net margin at 5.2% and gross margin of 27.9% — earnings take a bigger bite when COGS stays lean..

Gross Margin (%)

Revenue left after direct cost of goods sold

EBITDA Margin (%)

Operating profitability independent of capital structure

Operating & Net Margins (%)

How much of each dollar becomes profit