Pool Corporation (POOL)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,199,520 | 3,160,368 | 3,073,179 | 3,009,649 |
| Total current assets | US$ in thousands | 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 | 973,568 | 973,092 | 1,183,190 | 1,173,570 |
| Total current liabilities | US$ in thousands | 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 | 390,846 | 363,633 | 503,627 | 597,623 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $5,541,590K ÷ ($1,815,360K – $770,766K)
= 5.31
Pool Corporation's working capital turnover has shown a fluctuating trend over the past eight quarters. The ratio has ranged from a low of 3.75 in Q2 2022 to a high of 5.31 in Q4 2023. This indicates that the company is efficiently managing its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively utilizing its current assets to support its sales activities.
The general increasing trend in the working capital turnover ratio from Q1 2022 to Q4 2023 implies that Pool Corporation has been improving its ability to generate sales revenue relative to its working capital levels over time. Investors and creditors may view this positively as it indicates improved operational efficiency and potentially better financial health. It's important for the company to continue monitoring and managing its working capital effectively to sustain this positive trend in the future.