Pool Corporation (POOL)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,310,950 | 5,541,600 | 6,179,730 | 5,295,580 | 3,936,620 |
| Total assets | US$ in thousands | 3,368,180 | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 |
| Total asset turnover | 1.58 | 1.62 | 1.73 | 1.64 | 2.26 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $5,310,950K ÷ $3,368,180K
= 1.58
Pool Corporation's total asset turnover has displayed fluctuating trends over the past five years.
In 2020, the total asset turnover was 2.26, indicating that the company generated $2.26 in sales for every dollar of assets held. This suggests that Pool Corporation efficiently utilized its assets to generate revenue.
However, in subsequent years, there was a decline in the total asset turnover ratio. By the end of 2021, the ratio had decreased to 1.64, indicating a decrease in efficiency in generating sales relative to its asset base.
Although there was a slight improvement in 2022 with a total asset turnover of 1.73, the ratio declined again in 2023 to 1.62 and further to 1.58 by the end of 2024. This downward trend may indicate challenges in effectively utilizing the company's assets to generate revenue.
It is essential for Pool Corporation to analyze the factors contributing to this decline in total asset turnover and consider strategies to improve efficiency in utilizing its assets to drive sales and overall financial performance.