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Forensic Analysis · Durable-Goods Wholesale · as of Nov 8, 2026

Watsco Inc (WSO)

A forensic read on Watsco Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

B · Sound & dependable
Forensic grade
Safe
Financial health
7.8
Distress distance
Clean
Earnings quality
1
Forensic signals
18.3%
ROE
-5.0%
Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Watsco Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 7.8, placing it in the Safe zone. 1 forensic signal was flagged in its latest SEC filings, led by inventory days.

What the filings flag

97d
FY2024→FY2025
Inventory days. Days inventory outstanding moved from 89 to 97 FY2024→FY2025 (against cost of goods sold; inventory 0% vs -7% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.

Key fundamentals

Latest Revenue$7.24B
Revenue Growth YoY-5.0%
Revenue CAGR (2yr)-0.3%
Net Margin6.9%
Free Cash Flow$535.1M
Return on Equity18.3%
Debt / Equity0.17x

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Data from SEC EDGAR public filings · metrics as of Nov 8, 2026. Forensic signals flag probability, not certainty.

See a wrong number? Report an error with the filing it should match.