Pool Corporation (POOL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,729,110 | 1,815,360 | 2,018,990 | 1,769,080 | 1,121,930 |
| Total current liabilities | US$ in thousands | 844,186 | 770,766 | 675,714 | 744,416 | 483,249 |
| Current ratio | 2.05 | 2.36 | 2.99 | 2.38 | 2.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,729,110K ÷ $844,186K
= 2.05
Pool Corporation's current ratio has shown a generally positive trend over the past five years. It increased from 2.32 in December 2020 to 2.38 in December 2021, indicating the company's ability to meet its short-term liabilities with its current assets improved slightly.
The ratio further improved significantly to 2.99 in December 2022, reflecting a stronger liquidity position and the company's enhanced ability to fulfill its short-term obligations. However, there was a slight decrease in the current ratio to 2.36 in December 2023, possibly due to changes in the company's current asset and liability composition.
In December 2024, Pool Corporation's current ratio decreased to 2.05, suggesting a potential decrease in its liquidity position as the ability to cover short-term obligations with current assets declined. This decrease may warrant further investigation into the company's liquidity management and short-term financial health.
Overall, Pool Corporation's current ratio performance indicates varying levels of liquidity over the years, with improvements observed in some periods and declines in others. It is important for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term financial obligations effectively.