Pool Corporation (POOL)
Working capital 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 current assets | US$ in thousands | 1,729,110 | 1,815,360 | 2,018,990 | 1,769,080 | 1,121,930 |
| Total current liabilities | US$ in thousands | 844,186 | 770,766 | 675,714 | 744,416 | 483,249 |
| Working capital turnover | 6.00 | 5.31 | 4.60 | 5.17 | 6.16 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $5,310,950K ÷ ($1,729,110K – $844,186K)
= 6.00
Pool Corporation's working capital turnover has fluctuated over the past five years. The company's working capital turnover ratio, which measures how efficiently it utilizes working capital to generate sales, decreased from 6.16 in 2020 to 5.17 in 2021. This suggests a decline in the efficiency of utilizing its working capital during that period.
In 2022, the working capital turnover ratio further decreased to 4.60, indicating a continued decrease in efficiency in converting working capital into sales. However, by 2023, there was a slight improvement as the ratio increased to 5.31, suggesting better efficiency in utilizing working capital to generate sales.
The trend continued positively in 2024, with the working capital turnover ratio improving to 6.00. This indicates that Pool Corporation became more efficient in utilizing its working capital to generate sales during that year compared to the previous period.
Overall, while there have been fluctuations in Pool Corporation's working capital turnover over the years, the company showed improvement in 2024 compared to earlier years, indicating better efficiency in managing its working capital for generating sales.