Pool Corporation (POOL)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 125.98 | 114.97 | 125.21 | 142.78 | 128.40 | 116.29 | 126.52 | 149.50 | 136.76 | 134.46 | 142.77 | 154.21 | 132.87 | 106.81 | 95.86 | 115.90 | 101.60 | 85.19 | 93.40 | 133.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 125.98 | 114.97 | 125.21 | 142.78 | 128.40 | 116.29 | 126.52 | 149.50 | 136.76 | 134.46 | 142.77 | 154.21 | 132.87 | 106.81 | 95.86 | 115.90 | 101.60 | 85.19 | 93.40 | 133.90 |
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 fluctuated over the period from March 31, 2020, to December 31, 2024. The company's cash conversion cycle started at 133.90 days as of March 31, 2020, indicating that it took approximately 133.90 days for the company to convert its investments in inventory and other resources to cash flows from sales.
The cash conversion cycle then decreased to 93.40 days by June 30, 2020, suggesting an improvement in efficiency in managing its working capital. The trend continued with further reductions in the cash conversion cycle over some quarters, reaching a low of 85.19 days as of September 30, 2020.
However, the company experienced an increase in the cash conversion cycle to 132.87 days as of December 31, 2021, before fluctuating around this level over the following quarters. The cycle peaked at 154.21 days on March 31, 2022, and gradually decreased thereafter.
Overall, fluctuations in Pool Corporation's cash conversion cycle indicate varying efficiency levels in managing its receivables, payables, and inventory over the analyzed period. It is important for the company to continue monitoring and improving its cash conversion cycle to maintain healthy liquidity and optimize its working capital management.