Pool Corporation (POOL)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 38.03 39.96 28.39 36.64 48.19 32.35 24.68 28.82 34.11 29.14 22.95 35.14 32.20 27.14 23.74 49.44 41.74 32.93 24.15 41.60
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
Working capital turnover 5.31 5.02 4.36 4.50 4.60 4.18 3.75 3.92 5.17 5.64 5.62 6.41 6.16 6.30 5.88 5.60 5.49 5.19 4.52 5.23

Inventory turnover indicates how efficiently Pool Corporation is managing its inventory. The trend over the past eight quarters shows some fluctuation with Q3 2023 having the highest turnover at 3.14 and Q1 2023 the lowest at 2.44. Generally, a higher inventory turnover is preferable as it signifies that inventory is being sold and replenished more quickly.

Receivables turnover measures how efficiently Pool Corporation is collecting on its credit sales. There is significant variation in the turnover ratio over the quarters, with Q4 2022 showing the highest turnover at 17.58 and Q2 2023 the lowest at 9.15. A higher receivables turnover ratio indicates that Pool Corporation is collecting its accounts receivables more rapidly.

Payables turnover assesses how quickly Pool Corporation is paying its suppliers. The data shows some variability in payables turnover, with Q3 2022 having the highest turnover at 9.45 and Q1 2022 the lowest at 5.66. A higher payables turnover ratio indicates that Pool Corporation is able to effectively manage its payment obligations to suppliers.

Working capital turnover measures how efficiently Pool Corporation is utilizing its working capital to generate sales revenue. The trend shows slight fluctuations over the quarters with Q4 2023 having the highest turnover at 5.31 and Q3 2022 the lowest at 3.75. A higher working capital turnover ratio indicates that Pool Corporation is effectively utilizing its resources to generate sales.

Overall, Pool Corporation's activity ratios demonstrate varying levels of efficiency in managing inventory, collecting receivables, paying suppliers, and utilizing working capital to drive sales revenue. Monitoring these ratios over time can provide insights into the company's operational performance and efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 128.40 116.29 126.52 149.50 136.76 134.46 142.77 154.21 132.87 106.81 95.86 115.90 101.60 85.19 93.40 133.90 112.69 100.54 116.66 139.73
Days of sales outstanding (DSO) days 9.60 9.13 12.86 9.96 7.57 11.28 14.79 12.66 10.70 12.53 15.90 10.39 11.34 13.45 15.37 7.38 8.74 11.08 15.11 8.77
Number of days of payables days 47.83 39.66 44.06 65.57 34.96 38.62 54.63 64.46 39.56 42.40 47.09 75.31 34.70 37.31 51.47 80.76 42.04 34.97 57.51 80.93

Days of inventory on hand (DOH) measures how quickly a company is able to sell its inventory. Pool Corporation's DOH has been fluctuating over the past eight quarters, ranging from 116.29 days to 154.21 days. A decreasing trend in DOH is usually preferred as it indicates that the company is efficiently managing its inventory levels.

Days of sales outstanding (DSO) reflects how quickly a company collects its accounts receivable. Pool Corporation's DSO has also varied significantly over the quarters, with a low of 20.76 days and a high of 46.68 days. A lower DSO is generally better as it means the company is collecting payments more quickly.

Number of days of payables indicates how long it takes for a company to pay its suppliers. Pool Corporation's payment cycle has also experienced fluctuations, with a range from 34.96 days to 65.57 days. A longer payment cycle may indicate that the company is taking advantage of favorable credit terms. However, excessively long payment cycles could strain relationships with suppliers.

Overall, Pool Corporation should aim to strike a balance between managing inventory efficiently, collecting receivables promptly, and optimizing payment terms with suppliers to improve its liquidity and operational efficiency.

Long-term

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
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
Total asset turnover 1.62 1.64 1.57 1.55 1.73 1.66 1.49 1.45 1.64 2.23 2.18 2.02 2.26 2.32 2.08 1.88 2.16 2.13 1.82 1.79

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. In the case of Pool Corporation, the fixed asset turnover ratio has been consistently decreasing over the past eight quarters, indicating a declining trend in the efficiency of utilizing fixed assets to generate sales. This decline could be concerning as it suggests that the company may not be effectively leveraging its long-term assets to drive revenue.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with some quarters showing an increase and others showing a decrease. Overall, the total asset turnover ratio has not exhibited a clear trend, which could indicate inconsistency in how efficiently Pool Corporation is utilizing all of its assets to generate sales.

In conclusion, Pool Corporation's long-term activity ratios suggest that there may be room for improvement in how effectively the company is utilizing its assets to drive sales. Management should closely monitor these ratios to identify opportunities for operational efficiency and potential areas for improvement in asset utilization.