Pool Corporation (POOL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,815,360 | 2,018,990 | 1,769,080 | 1,121,930 | 973,568 |
| Total current liabilities | US$ in thousands | 770,766 | 675,714 | 744,416 | 483,249 | 390,846 |
| Current ratio | 2.36 | 2.99 | 2.38 | 2.32 | 2.49 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,815,360K ÷ $770,766K
= 2.36
The current ratio measures a company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates that the company has more current assets relative to its current liabilities, suggesting a stronger liquidity position.
Pool Corporation's current ratio fluctuated over the past five years, ranging from 2.32 in 2020 to 2.99 in 2022. In 2023, the current ratio decreased to 2.36. While it has decreased from the prior year, the current ratio of 2.36 still indicates that Pool Corporation has $2.36 in current assets for every $1 of current liabilities, demonstrating a healthy liquidity position.
The trend in Pool Corporation's current ratio suggests some variability in its short-term liquidity position over the years, but overall, the company has maintained a relatively strong ability to cover its short-term obligations with its current assets. Investors and creditors typically prefer a current ratio above 1, so Pool Corporation's current ratio values suggest effective management of its short-term financial obligations.