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.