Pool Corporation (POOL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 77,862 | 91,347 | 96,894 | 67,974 | 66,540 | 85,220 | 53,225 | 26,470 | 45,591 | 49,079 | 91,481 | 35,365 | 24,321 | 83,475 | 58,465 | 27,078 | 34,128 | 74,749 | 44,185 | 17,808 |
| Short-term investments | US$ in thousands | — | — | 3,795 | 4,984 | — | — | — | — | — | 36,529 | 24,828 | 18,817 | — | 5,488 | 4,641 | 8,180 | 223 | 1,314 | — | — |
| Total current liabilities | US$ in thousands | 844,186 | 726,915 | 807,373 | 1,136,180 | 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 |
| Cash ratio | 0.09 | 0.13 | 0.12 | 0.06 | 0.09 | 0.12 | 0.07 | 0.03 | 0.07 | 0.12 | 0.13 | 0.06 | 0.03 | 0.12 | 0.09 | 0.04 | 0.07 | 0.16 | 0.08 | 0.03 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates that a company has enough liquid assets to cover its current liabilities.
Looking at the data for Pool Corporation's cash ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The cash ratio ranged from as low as 0.03 to as high as 0.16 during this period.
The trend in Pool Corporation's cash ratio shows some variability quarter to quarter, with peaks and troughs observed. For example, the cash ratio increased from 0.03 in March 31, 2020, to 0.16 in September 30, 2020, indicating a significant improvement in the company's ability to cover short-term obligations. However, this was followed by a decline to 0.04 by March 31, 2021.
Overall, Pool Corporation's cash ratio fluctuated within a range during the analyzed period, suggesting changes in the company's liquidity position. Further analysis of the underlying financial performance and cash management strategies would be required to fully assess the implications of these fluctuations in the cash ratio.