Watsco Cash And Equivalents vs. Revenue
| WC3 Stock | EUR 466.80 3.40 0.73% |
For Watsco profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Watsco to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Watsco Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Watsco's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Watsco Inc over time as well as its relative position and ranking within its peers.
Watsco |
Watsco Inc Revenue vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Watsco's current stock value. Our valuation model uses many indicators to compare Watsco value to that of its competitors to determine the firm's financial worth. Watsco Inc is rated first in cash and equivalents category among its peers. It is rated third in revenue category among its peers totaling about 130.11 of Revenue per Cash And Equivalents. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Watsco's earnings, one of the primary drivers of an investment's value.Watsco Revenue vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Watsco |
| = | 55.91 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Watsco |
| = | 7.27 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Watsco Revenue vs Competition
Watsco Inc is rated third in revenue category among its peers. Market size based on revenue of Industrial Distribution industry is at this time estimated at about 1.88 Trillion. Watsco adds roughly 7.27 Billion in revenue claiming only tiny portion of equities under Industrial Distribution industry.
Watsco Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Watsco, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Watsco will eventually generate negative long term returns. The profitability progress is the general direction of Watsco's change in net profit over the period of time. It can combine multiple indicators of Watsco, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Watsco, Inc., together with its subsidiaries, distributes air conditioning, heating, and refrigeration equipment and related parts and supplies in the United States, Canada, Mexico, and Puerto Rico. Watsco, Inc. was founded in 1945 and is headquartered in Miami, Florida. WATSCO INC operates under Industrial Distribution classification in Germany and is traded on Frankfurt Stock Exchange. It employs 5200 people.
Watsco Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Watsco. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Watsco position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Watsco's important profitability drivers and their relationship over time.
Use Watsco in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Watsco position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Watsco will appreciate offsetting losses from the drop in the long position's value.Watsco Pair Trading
Watsco Inc Pair Trading Analysis
The ability to find closely correlated positions to Watsco could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Watsco when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Watsco - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Watsco Inc to buy it.
The correlation of Watsco is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Watsco moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Watsco Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Watsco can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Watsco position
In addition to having Watsco in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Information and Resources on Investing in Watsco Stock
When determining whether Watsco Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Watsco's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Watsco Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Watsco Inc Stock:Check out Your Current Watchlist. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
To fully project Watsco's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Watsco Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Watsco's income statement, its balance sheet, and the statement of cash flows.