Pool Corporation (POOL)

Short-term

Turnover ratios

Based on the provided data for Pool Corporation, let's analyze the activity ratios:

1. Inventory Turnover Ratio: The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. Pool Corporation's inventory turnover has fluctuated over the periods, ranging from a low of 2.37 to a high of 4.28. A higher turnover ratio indicates more efficient management of inventory, which can lead to lower carrying costs and potential stockouts.

2. Receivables Turnover: Unfortunately, data for receivables turnover is not available in the provided dataset. This ratio helps in understanding how efficiently the company is collecting payments from its customers. A high receivables turnover indicates that the company efficiently collects payments from its customers.

3. Payables Turnover: Data for payables turnover is also not available. Payables turnover is used to evaluate how quickly a company pays its suppliers. A high payables turnover may indicate that a company is efficiently managing its payables.

4. Working Capital Turnover Ratio: This ratio measures how efficiently a company is using its working capital to generate sales. Pool Corporation's working capital turnover ratio has varied over time, with values ranging from 3.75 to 6.41. A higher turnover ratio suggests effective utilization of working capital to generate sales, which can be a positive indicator of operational efficiency.

In summary, Pool Corporation has shown varying levels of efficiency in managing its inventory and working capital over the periods covered by the data. However, without information on receivables and payables turnover, a complete assessment of the company's overall activity efficiency cannot be provided.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Pool Corporation has exhibited fluctuations over the reported periods, ranging from a low of 85.19 days to a high of 154.21 days. Generally, a lower DOH indicates efficient inventory management as the company is selling inventory quickly, whereas a higher DOH may suggest inventory build-up or slow sales.

The Days of Sales Outstanding (DSO) and Number of Days of Payables ratios were not provided in the data, indicating that these metrics were not publicly disclosed or may have been considered immaterial for analysis during the periods reported. DSO measures how quickly a company collects its outstanding accounts receivable, while the Number of Days of Payables assesses how long it takes a company to pay its suppliers.

To gain a complete understanding of Pool Corporation's liquidity and efficiency in managing its working capital, it is essential to analyze all three activity ratios together. The trends in these ratios can provide insights into the company's operational efficiency, cash flow management, and potential risks related to inventory levels, sales collection, and payment practices.

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Long-term

The fixed asset turnover ratio for Pool Corporation demonstrates the efficiency with which the company is utilizing its fixed assets to generate revenue. The trend shows a significant increase from March 2020 to December 2022, indicating improved efficiency in generating sales from its fixed assets. However, there was a sharp decline in the ratio in the following quarters, particularly in the first half of 2023, which could suggest a slowdown in the company's asset utilization.

In comparison, the total asset turnover ratio, which measures the company's overall efficiency in generating sales from all its assets, shows a fluctuating trend over the analyzed periods. While there is some variability in the ratio, it generally registers values above 1, indicating that Pool Corporation is efficiently using its assets to generate revenue.

When comparing the fixed asset turnover ratio with the total asset turnover ratio, it is important to note that the fixed asset turnover ratio focuses specifically on the efficiency of fixed assets, whereas the total asset turnover ratio considers all assets. The decline in the fixed asset turnover ratio in the latter part of the analysis period could raise questions about the company's management of its fixed assets and the potential impact on overall asset efficiency.

Overall, Pool Corporation's long-term activity ratios suggest fluctuations in asset utilization efficiency, particularly in fixed asset turnover, which could be a point of interest for further analysis and consideration in assessing the company's operational performance and financial health.