Pool Corporation (POOL)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,310,949 | 5,326,520 | 5,368,050 | 5,455,630 | 5,541,590 | 5,634,460 | 5,775,390 | 5,973,850 | 6,179,730 | 6,119,370 | 5,915,480 | 5,647,490 | 5,295,580 | 5,099,281 | 4,827,061 | 4,320,081 | 3,936,629 | 3,679,602 | 3,438,872 | 3,279,352 |
| Total current assets | US$ in thousands | 1,729,110 | 1,740,700 | 2,005,810 | 2,136,620 | 1,815,360 | 1,832,520 | 2,097,060 | 2,305,200 | 2,018,990 | 2,199,480 | 2,470,480 | 2,398,760 | 1,769,080 | 1,626,400 | 1,557,400 | 1,517,300 | 1,121,930 | 1,066,680 | 1,137,150 | 1,238,380 |
| Total current liabilities | US$ in thousands | 844,186 | 726,915 | 807,373 | 1,136,180 | 770,766 | 709,120 | 771,740 | 977,420 | 675,714 | 737,260 | 891,035 | 958,448 | 744,416 | 722,136 | 697,734 | 843,342 | 483,249 | 482,518 | 552,116 | 652,290 |
| Working capital turnover | 6.00 | 5.25 | 4.48 | 5.45 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,310,949K ÷ ($1,729,110K – $844,186K)
= 6.00
Pool Corporation's working capital turnover has shown fluctuations over the periods provided. The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
In the given data, the working capital turnover ratio increased from 5.60 in March 2020 to a peak of 6.41 in March 2021, indicating an improvement in the efficiency of working capital management. However, the ratio decreased in the subsequent quarters, reaching a low of 3.75 in June 2022 before gradually recovering.
The ratio remained somewhat volatile over the following quarters, showing peaks and troughs. It peaked again at 6.00 in December 2024, suggesting improved efficiency, but the ratio ended at 5.25 in September 2024.
The trend in the working capital turnover ratio indicates fluctuations in Pool Corporation's ability to efficiently turn its working capital into sales revenue. Further analysis of the factors contributing to these fluctuations would be necessary to assess the overall effectiveness of the company's working capital management strategies.