Pool Corporation (POOL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,541,600 | 6,179,730 | 5,295,580 | 3,936,620 | 3,199,520 |
| Property, plant and equipment | US$ in thousands | 223,929 | 193,709 | 179,008 | 108,241 | 112,246 |
| Fixed asset turnover | 24.75 | 31.90 | 29.58 | 36.37 | 28.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,541,600K ÷ $223,929K
= 24.75
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Pool Corporation's fixed asset turnover has exhibited fluctuations over the past five years. In 2023, the fixed asset turnover ratio was 24.75, representing a decrease from the previous year's 31.90. This decline suggests that Pool Corporation generated $24.75 in revenue for every $1 invested in fixed assets during 2023. While the ratio has decreased, it remains relatively high, indicating efficient utilization of fixed assets to generate sales.
It is important to note that the fixed asset turnover ratio should be interpreted within the specific industry context and compared to industry benchmarks for a more accurate assessment of operational efficiency and effectiveness in utilizing fixed assets.