Watsco's Q4 2024 results reveal a company firing on all cylinders, with multiple indicators pointing to sustainable growth and market leadership. The 9% revenue growth to $1.75 billion is particularly impressive given the seasonal nature of Q4, traditionally the weakest quarter in HVAC distribution. Three key metrics stand out: First, the 90 basis point expansion in gross margin to 26.7% demonstrates pricing power and operational efficiency. Second, the 16% growth in residential equipment sales, driven by unit growth and market share gains, indicates successful market penetration. Third, e-commerce sales reaching 35% of total revenue ($2.6 billion) showcases successful digital transformation. The company's working capital management deserves special attention. Operating cash flow increased 38% to $773 million, representing 122% of net income - an exceptional cash conversion ratio that provides significant strategic flexibility.