Pool Corporation (POOL)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,735,606 | 3,747,645 | 3,776,845 | 3,826,785 | 3,881,554 | 3,952,468 | 4,018,438 | 4,117,868 | 4,246,310 | 4,179,302 | 4,037,201 | 3,884,341 | 3,678,494 | 3,565,479 | 3,406,461 | 3,077,676 | 2,805,721 | 2,625,739 | 2,455,777 | 2,339,426 |
| Inventory | US$ in thousands | 1,289,300 | 1,180,490 | 1,295,600 | 1,496,950 | 1,365,470 | 1,259,310 | 1,392,890 | 1,686,680 | 1,591,060 | 1,539,570 | 1,579,100 | 1,641,160 | 1,339,100 | 1,043,410 | 894,654 | 977,228 | 780,989 | 612,824 | 628,418 | 858,190 |
| Inventory turnover | 2.90 | 3.17 | 2.92 | 2.56 | 2.84 | 3.14 | 2.88 | 2.44 | 2.67 | 2.71 | 2.56 | 2.37 | 2.75 | 3.42 | 3.81 | 3.15 | 3.59 | 4.28 | 3.91 | 2.73 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,735,606K ÷ $1,289,300K
= 2.90
Pool Corporation's inventory turnover has fluctuated over the past few years, ranging from a low of 2.37 in March 2022 to a high of 4.28 in September 2020. The inventory turnover ratio indicates how efficiently the company is managing its inventory levels and converting them into sales. A higher turnover ratio typically suggests that inventory is selling quickly, while a lower ratio may indicate potential issues with sales or inventory management.
The general trend for Pool Corporation's inventory turnover seems to have increased in the initial years but then fluctuated before stabilizing around the range of 2.5 to 3.5 in recent periods. It's crucial for the company to strike a balance in maintaining sufficient inventory levels to meet customer demand while not keeping excessive amounts that could tie up valuable resources.
A stable and consistent inventory turnover ratio is essential for Pool Corporation to ensure optimal utilization of resources, minimize carrying costs, and improve overall operational efficiency. Monitoring and analyzing this ratio regularly can provide insights into the company's inventory management performance and help identify areas for improvement.