Pool Corporation (POOL)

Current 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
Total current assets US$ in thousands 1,729,110 1,740,700 2,005,810 2,136,620 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
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
Current ratio 2.05 2.39 2.48 1.88 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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,729,110K ÷ $844,186K
= 2.05

The current ratio of Pool Corporation has shown fluctuations over the past few years, ranging from a low of 1.80 to a high of 2.99. The ratio measures the company's ability to meet its short-term obligations with its current assets, with a higher ratio indicating stronger liquidity.

During the period under review, the current ratio generally trended upwards, reaching its peak of 2.99 as of December 31, 2022. This suggests that Pool Corporation had a comfortable cushion of current assets to cover its current liabilities at that time. However, the ratio dipped in the following periods, dropping to 1.88 by March 31, 2024.

The fluctuations in the current ratio could be attributed to changes in the company's current assets and liabilities. A thorough analysis of the components of current assets and liabilities would be needed to provide a more detailed explanation for the changes observed in the current ratio over the period. Overall, maintaining a current ratio above 2 indicates that Pool Corporation has generally been in a strong position to meet its short-term obligations with its current assets.