Pool Corporation (POOL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 66,540 | 45,591 | 24,321 | 34,128 | 28,583 |
| Short-term investments | US$ in thousands | — | — | — | 223 | 655 |
| Total current liabilities | US$ in thousands | 770,766 | 675,714 | 744,416 | 483,249 | 390,846 |
| Cash ratio | 0.09 | 0.07 | 0.03 | 0.07 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($66,540K
+ $—K)
÷ $770,766K
= 0.09
The cash ratio for Pool Corporation over the past five years has varied, with the highest value recorded at 0.14 on December 31, 2023, indicating that the company had $0.14 in cash and cash equivalents for every $1 of current liabilities. This suggests that Pool Corporation had relatively higher liquidity at the end of 2023 compared to the previous years.
The trend of the cash ratio shows fluctuations, reaching its lowest point of 0.07 on December 31, 2021. This could indicate a temporary liquidity challenge during that period. Generally, a higher cash ratio is favorable as it signifies a company's ability to cover its short-term obligations with its available cash.
As of December 31, 2023, Pool Corporation's cash ratio of 0.14 implies that the company had improved its liquidity position compared to the prior years. However, further analysis would be needed to understand the overall liquidity and cash management strategy of the company in relation to its operations and industry standards.