Pool Corporation (POOL)

Liquidity ratios

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
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
Quick ratio 0.28 0.32 0.33 0.19 0.26 0.37 0.40 0.24 0.24 0.36 0.39 0.18 0.33 0.44 0.34 0.13 0.27 0.36 0.37 0.17
Cash ratio 0.09 0.12 0.07 0.03 0.07 0.12 0.13 0.04 0.03 0.12 0.09 0.03 0.07 0.16 0.08 0.03 0.07 0.10 0.12 0.05

Pool Corporation's liquidity ratios show varying trends over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has been relatively stable around 2.5 over the period. This indicates a healthy level of liquidity to meet current liabilities.

On the other hand, the quick ratio, also known as the acid-test ratio, has shown more variability. It measures the company's ability to pay off current liabilities without relying on the sale of inventory. Pool Corporation's quick ratio has fluctuated between 0.58 and 0.91, indicating some volatility in its liquidity position.

The cash ratio, which is the most stringent liquidity ratio, considers only cash and cash equivalents in relation to current liabilities. Pool Corporation's cash ratio has shown a similar level of variability as the quick ratio, ranging from 0.06 to 0.16. This suggests that the company may have varying levels of readily available cash to cover immediate obligations.

Overall, Pool Corporation has maintained a strong current ratio above 2, indicating a healthy liquidity position, albeit with some fluctuations in its quick and cash ratios. Investors and creditors should continue to monitor these ratios to assess the company's short-term liquidity risk.

Additional liquidity measure

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
Cash conversion cycle days 90.17 85.77 95.31 93.90 109.38 107.12 102.92 102.42 104.01 76.94 64.68 50.97 78.23 61.32 57.31 60.52 79.40 76.66 74.26 67.57

The cash conversion cycle of Pool Corporation has fluctuated over the last eight quarters. From Q1 2022 to Q4 2023, the company has shown a general trend of improvement in its cash conversion cycle, with the cycle decreasing from 133.70 days in Q1 2022 to 103.15 days in Q4 2023. This indicates that Pool Corporation has been more efficient in managing its cash, inventory, and receivables over time.

Despite some minor fluctuations quarter to quarter, the overall trend suggests that the company has been able to speed up the conversion of its investments in inventory into cash from sales, as well as the collection of receivables from customers. This improvement is a positive sign as it indicates stronger working capital management and better liquidity for the company.

However, it is worth noting that the cash conversion cycle increased slightly in Q2 2023 and Q3 2023 compared to Q1 2023, but then decreased again in Q4 2023. This could be due to seasonal factors or fluctuations in the company's operating cycle, and further analysis would be needed to determine the factors driving these changes.

Overall, Pool Corporation's decreasing trend in the cash conversion cycle is a positive indicator of the company's efficiency in managing its working capital and converting its assets into cash.