Pool Corporation (POOL)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,541,590 | 5,634,460 | 5,775,390 | 5,973,850 | 6,179,730 | 6,119,370 | 5,915,480 | 5,647,490 | 5,295,580 | 5,099,281 | 4,827,061 | 4,320,081 | 3,936,629 | 3,679,602 | 3,438,872 | 3,279,352 | 3,199,520 | 3,160,368 | 3,073,179 | 3,009,649 |
| Property, plant and equipment | US$ in thousands | 223,929 | 213,732 | 209,541 | 200,997 | 193,709 | 184,387 | 183,480 | 180,504 | 179,008 | 111,339 | 111,661 | 109,830 | 108,241 | 109,086 | 111,258 | 113,987 | 112,246 | 112,816 | 113,360 | 107,690 |
| Fixed asset turnover | 24.75 | 26.36 | 27.56 | 29.72 | 31.90 | 33.19 | 32.24 | 31.29 | 29.58 | 45.80 | 43.23 | 39.33 | 36.37 | 33.73 | 30.91 | 28.77 | 28.50 | 28.01 | 27.11 | 27.95 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,541,590K ÷ $223,929K
= 24.75
The fixed asset turnover ratio for Pool Corporation has shown a declining trend over the past eight quarters. Starting at 31.90 in Q4 2022, the ratio steadily decreased to 24.75 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has been decreasing.
A lower fixed asset turnover ratio could suggest inefficiencies in asset utilization, potentially indicating either underutilization of fixed assets or a decrease in sales generated from these assets. This trend is a cause for concern as it may imply that Pool Corporation is not effectively leveraging its fixed assets to generate revenue.
Further investigation into the reasons behind this declining trend is recommended to identify potential operational inefficiencies or strategic issues affecting the company's performance in utilizing its fixed assets effectively.