Pool Corporation (POOL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 125.98 | 128.40 | 136.76 | 132.87 | 101.60 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 125.98 | 128.40 | 136.76 | 132.87 | 101.60 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 125.98 + — – —
= 125.98
The cash conversion cycle of Pool Corporation has shown fluctuations over the past five years.
In December 2020, the cash conversion cycle was 101.60 days, indicating that it took the company an average of 101.60 days to convert its investments in inventory and accounts receivable into cash.
By December 2021, the cash conversion cycle had increased to 132.87 days, suggesting a longer period for the company to convert its resources into cash. This increase may be attributed to changes in inventory management or collection practices.
The trend continued with the cash conversion cycle rising to 136.76 days by December 2022, reflecting a further delay in the conversion of assets into cash.
A slight improvement was seen in December 2023, with the cash conversion cycle decreasing to 128.40 days. This may indicate that Pool Corporation made some adjustments to improve efficiency in its cash conversion process.
In December 2024, the cash conversion cycle was 125.98 days, showing a continued effort by the company to streamline its operations and enhance its cash conversion efficiency.
Overall, the trend in Pool Corporation's cash conversion cycle suggests varying performance in managing its working capital and liquidity over the years, with some fluctuations that may warrant further investigation into the company's operational and financial strategies.