Pool Corporation (POOL)
Payables 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 |
| Payables | US$ in thousands | 508,672 | 429,436 | 485,100 | 739,749 | 406,667 | 442,226 | 604,225 | 685,946 | 398,697 | 414,156 | 439,453 | 634,998 | 266,753 | 268,412 | 346,272 | 517,620 | 261,963 | 214,309 | 342,335 | 472,487 |
| Payables turnover | 7.63 | 9.20 | 8.28 | 5.57 | 10.44 | 9.45 | 6.68 | 5.66 | 9.23 | 8.61 | 7.75 | 4.85 | 10.52 | 9.78 | 7.09 | 4.52 | 8.68 | 10.44 | 6.35 | 4.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,881,554K ÷ $508,672K
= 7.63
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a specific period. A higher payables turnover ratio indicates that a company is paying off its suppliers more quickly.
Pool Corporation's payables turnover has fluctuated over the last eight quarters, ranging from 5.66 to 10.44. In Q4 2023, the payables turnover was 7.63, which indicates that Pool Corporation paid off its suppliers approximately 7.63 times during that quarter. This value is lower than in the previous quarter, Q3 2023, when the ratio was 9.20.
The downward trend in Q4 2023 may suggest that Pool Corporation took longer to pay off its suppliers compared to the previous quarter. However, it is essential to consider the industry norms and peer comparisons to fully assess the efficiency of Pool Corporation's payables management.
Overall, Pool Corporation should strive to maintain an appropriate balance between paying off its suppliers promptly to maintain good supplier relationships while also managing its cash flow effectively.