Pool Corporation (POOL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,541,600 | 6,179,730 | 5,295,580 | 3,936,620 | 3,199,520 |
| Receivables | US$ in thousands | 145,723 | 128,247 | 155,259 | 122,252 | 76,648 |
| Receivables turnover | 38.03 | 48.19 | 34.11 | 32.20 | 41.74 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $5,541,600K ÷ $145,723K
= 38.03
Pool Corporation's receivables turnover has been relatively stable over the past five years, ranging from 13.61 to 17.58 times. A higher receivables turnover indicates that the company is collecting its accounts receivable more frequently within a given period, which is generally considered positive as it reflects efficient management of receivables.
In this case, the downward trend from 17.58 in 2022 to 16.16 in 2023 may suggest a slight decrease in the speed at which Pool Corporation is collecting its outstanding receivables. However, the current level of 16.16 is still relatively high and indicates that the company is efficiently converting its accounts receivable into cash.
It is essential for Pool Corporation to continually monitor and manage its receivables turnover to ensure that it remains at an optimal level, balancing the need to collect outstanding receivables promptly with maintaining good customer relationships.