Pool Corporation (POOL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 77,862 | 66,540 | 45,591 | 24,321 | 34,128 |
| Short-term investments | US$ in thousands | — | — | — | — | 223 |
| Total current liabilities | US$ in thousands | 844,186 | 770,766 | 675,714 | 744,416 | 483,249 |
| Cash ratio | 0.09 | 0.09 | 0.07 | 0.03 | 0.07 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($77,862K
+ $—K)
÷ $844,186K
= 0.09
The cash ratio of Pool Corporation has fluctuated over the years as follows:
- December 31, 2020: 0.07
- December 31, 2021: 0.03
- December 31, 2022: 0.07
- December 31, 2023: 0.09
- December 31, 2024: 0.09
The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term liabilities.
Based on the data provided, the cash ratio decreased in 2021 but recovered and stabilized in the subsequent years. It reached its lowest point in 2021 at 0.03, indicating a weaker ability to cover short-term obligations with cash. However, the ratio improved in the following years, reaching 0.09 in 2023 and 2024.
Overall, Pool Corporation's cash ratio shows some volatility but has ultimately strengthened in recent years, suggesting an improved ability to meet short-term financial obligations with available cash resources.