Pool Corporation (POOL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 2,274,592 | 2,237,048 | 2,172,787 | 2,130,922 |
| Inventory | US$ in thousands | 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 | 702,274 | 616,217 | 694,447 | 815,742 |
| Inventory turnover | 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 | 3.24 | 3.63 | 3.13 | 2.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,881,554K ÷ $1,365,470K
= 2.84
The inventory turnover of Pool Corporation has shown fluctuations over the past eight quarters. The highest inventory turnover ratio was observed in Q3 2023 at 3.14, indicating that the company sold and replaced its inventory more than three times during that quarter. This suggests efficient management of inventory levels.
However, the inventory turnover ratio decreased in Q4 2023 to 2.84, which may indicate a slightly slower rate of inventory turnover compared to the previous quarter. Despite this decline, the ratio remains relatively healthy, indicating that Pool Corporation is effectively managing its inventory levels.
Looking at the trend over the quarters, Pool Corporation generally maintains a consistent inventory turnover ratio above 2, reflecting a good balance between managing inventory levels and ensuring products are sold in a timely manner. This stability suggests that the company has a strong grasp on inventory management practices.
Overall, while there have been fluctuations in the inventory turnover ratio over the quarters, Pool Corporation appears to be effectively managing its inventory to support its sales operations.