Is WATSCO INC (WSO-B) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 2.8% / 30% | 4.3% / 30% | 4.7% / 30% | 0.38% / 5% | ✓ HALAL |
| DJIM | 2.8% / 33% | 4.3% / 33% | 4.7% / 33% | 0.38% / 5% | ✓ HALAL |
| MSCI | 10.8% / 33% | 16.6% / 33% | 18.0% / 33% | 0.38% / 5% | ✓ HALAL |
| S&P | 2.8% / 33% | 4.3% / 33% | 4.7% / 33% | 0.38% / 5% | ✓ HALAL |
| FTSE | 10.8% / 33% | 16.6% / 33% | 18.0% / 50% | 0.38% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 28.0% | |
| Operating Margin | 6.1% | |
| Net Margin | 6.9% | |
| Return on Equity (ROE) | 18.7% | |
| Return on Assets (ROA) | 9.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $570M |
| Free Cash Flow | $535M |
| Total Debt | $479M |
| Debt-to-Equity | 14.9 |
| Current Ratio | 4.1 |
| Total Assets | $4.4B |
Price & Trading
| Last Close | $368.33 |
| 50-Day MA | $391.48 |
| 200-Day MA | $397.29 |
| Avg Volume | 32 |
| Beta | 1.0 |
|
52-Week Range
$338.85
| |
About WATSCO INC (WSO-B)
Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment. The company also offers parts comprising replacement compressors, evaporator coils, motors, and other component parts; and supplies, such as thermostats, insulation materials, refrigerants, ductworks, grills, registers, sheet metals, tools, copper tubing, concrete pads, tapes, adhesives, and other ancillary supplies, as well as plumbing and bathroom remodeling supplies. It serves contractors and dealers that service the replacement and new construction markets for residential and light commercial central air conditioning, heating, and refrigeration systems. Watsco, Inc. was incorporated in 1956 and is headquartered in Miami, Florida.
Purification Calculator
As a halal stock with 0.38% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is WATSCO INC (WSO-B) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), WATSCO INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is WATSCO INC's debt ratio?
WATSCO INC's debt ratio is 2.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.8%.
Does WATSCO INC require dividend purification?
Yes, WATSCO INC has an impermissible income ratio of 0.38%, which means 0.38% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are WATSCO INC's key financial metrics?
WATSCO INC has a market capitalization of $15.0B, trailing P/E ratio of 30.1, and revenue of $7.2B. The company maintains a gross margin of 28.0% and a net margin of 6.9%. Return on equity stands at 18.7%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.