Pool Corporation (POOL)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	1,815,360	1,832,520	2,097,060	2,305,200	2,018,990	2,199,480	2,470,480	2,398,760	1,769,080	1,626,400	1,557,400	1,517,300	1,121,930	1,066,680	1,137,150	1,238,380	973,568	973,092	1,183,190	1,173,570
Total current liabilities	US$ in thousands	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	390,846	363,633	503,627	597,623
Current ratio		2.36	2.58	2.72	2.36	2.99	2.98	2.77	2.50	2.38	2.25	2.23	1.80	2.32	2.21	2.06	1.90	2.49	2.68	2.35	1.96

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,815,360K ÷ $770,766K
= 2.36

The current ratio of Pool Corporation has exhibited some fluctuations over the past eight quarters, ranging from a low of 2.36 in Q1 2023 to a high of 2.99 in Q4 2022. Overall, the current ratio has generally remained above 2.5, indicating that the company has consistently maintained a strong liquidity position to cover its short-term liabilities.

The decrease in the current ratio from Q4 2022 to Q1 2023 may suggest a temporary strain on liquidity or a buildup of short-term obligations during that period. However, the subsequent increase in the current ratio in Q2 and Q3 2023 indicates an improvement in liquidity management.

Pool Corporation's current ratio peaked at 2.99 in Q4 2022, suggesting a particularly robust liquidity position at that time. This high ratio could imply that the company had more than enough current assets to cover its current liabilities, providing a solid buffer against any short-term financial challenges.

Overall, the current ratio trend of Pool Corporation reflects a relatively stable and healthy liquidity position, with occasional fluctuations that may warrant further investigation into the company's working capital management strategies and short-term financial obligations.