Pool Corporation (POOL)

Quick 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
Cash	US$ in thousands	66,540	85,220	53,225	26,470	45,591	49,079	91,481	35,365	24,321	83,475	58,465	27,078	34,128	74,749	44,185	17,808	28,583	36,693	60,694	28,581
Short-term investments	US$ in thousands	—	—	—	—	—	36,529	24,828	—	—	1,242	1,293	1,305	1,292	1,314	—	—	—	—	—	—
Receivables	US$ in thousands	145,723	140,997	203,459	163,048	128,247	189,173	239,639	195,951	155,259	174,987	210,318	122,938	122,252	135,555	144,842	66,328	76,648	95,971	127,260	72,352
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($66,540K + $—K + $145,723K) ÷ $770,766K
= 0.28

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position and a better ability to cover immediate liabilities.

Pool Corporation's quick ratio has fluctuated over the past eight quarters, ranging from 0.58 to 1.00. In Q4 2023, the quick ratio was 0.58, suggesting a decrease in liquidity compared to the previous quarter. This may raise concerns about the company's ability to meet its short-term obligations using its most liquid assets.

However, it's important to note that the quick ratio in Q4 2023 is still above 0.5, indicating that Pool Corporation has a sufficient level of liquid assets to cover its current liabilities. Moreover, the quick ratio has shown variability in the past quarters, with some quarters exhibiting higher ratios (such as Q2 2022 with 1.00) indicating better liquidity positions.

Overall, while the recent decrease in the quick ratio may be a point of concern, Pool Corporation has generally maintained a reasonable level of liquidity to meet its short-term obligations. It would be advisable to further analyze the company's working capital management and cash flow trends to better understand its liquidity position.