Flagship explainer

What drives WATSCO INC’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity18%Tax burden67%net income ÷ pretax incomeInterest burden102%pretax ÷ operating incomeOperating margin10%operating income ÷ revenueAsset turnover1.63×revenue ÷ average assetsEquity multiplier1.64×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$497MFY2025
Income before tax$738MFY2025
Operating income$720MFY2025
$7.2BFY2025
Ending assets$4.4BFY2025
Beginning assets$4.5BFY2024
$2.8BFY2025
$2.7BFY2024
Source: · event Dec 31, 2025 · retrieved Oct 16, 2026 · annual-row source set
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