Pool Corporation (POOL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 38.03 | 39.96 | 28.39 | 36.64 | 48.19 | 32.35 | 24.68 | 28.82 | 34.11 | 29.14 | 22.95 | 35.14 | 32.20 | 27.14 | 23.74 | 49.44 | 41.74 | 32.93 | 24.15 | 41.60 | |
| DSO | days | 9.60 | 9.13 | 12.86 | 9.96 | 7.57 | 11.28 | 14.79 | 12.66 | 10.70 | 12.53 | 15.90 | 10.39 | 11.34 | 13.45 | 15.37 | 7.38 | 8.74 | 11.08 | 15.11 | 8.77 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 38.03
= 9.60
The days of sales outstanding (DSO) ratio for Pool Corporation has exhibited fluctuations over the past eight quarters, ranging from a low of 20.76 days in Q4 2022 to a high of 46.68 days in Q2 2022. Generally, a lower DSO indicates that the company is collecting its accounts receivable faster, which may suggest efficient credit and collection policies. On the other hand, a higher DSO implies that the company takes longer to collect its sales revenue, potentially indicating issues with credit control or customer payment behaviors.
In analyzing Pool Corporation's DSO trend, we observe an improvement in collection efficiency from Q2 2022 through Q4 2022, with a decrease in DSO from 46.68 days to 20.76 days. However, in Q1 2023, there was a slight increase in DSO to 34.47 days, followed by a further increase to 39.88 days in Q2 2023. This uptrend continued into Q3 2023, where DSO rose to 29.90 days before improving to 22.59 days in Q4 2023.
The fluctuating DSO trend indicates some variability in Pool Corporation's collection performance, which may be influenced by factors such as customer payment terms, economic conditions, and seasonal variations in sales. It is essential for the company to focus on maintaining an optimal balance between efficient collections and maintaining positive customer relationships to ensure healthy cash flow and liquidity.