Pool Corporation (POOL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 77,862 | 91,347 | 96,894 | 67,974 | 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 |
| Short-term investments | US$ in thousands | — | — | 3,795 | 4,984 | — | — | — | — | — | 36,529 | 24,828 | 18,817 | — | 5,488 | 4,641 | 8,180 | 223 | 1,314 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.09 | 0.13 | 0.12 | 0.06 | 0.09 | 0.12 | 0.07 | 0.03 | 0.07 | 0.12 | 0.13 | 0.06 | 0.03 | 0.12 | 0.09 | 0.04 | 0.07 | 0.16 | 0.08 | 0.03 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($77,862K
+ $—K
+ $—K)
÷ $844,186K
= 0.09
The quick ratio, also known as the acid-test ratio, indicates a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests potential liquidity issues as the company may struggle to cover its current liabilities with its quick assets.
Analyzing Pool Corporation's quick ratio over the previous years, the ratio has fluctuated quite significantly. Starting at a low of 0.03 on March 31, 2020, it increased to 0.16 on September 30, 2020, indicating an improvement in the company's ability to meet its short-term obligations. However, it decreased to 0.03 by December 31, 2021, which could be a cause for concern as it fell below 1.
The quick ratio showed some recovery in the following periods, reaching 0.13 on June 30, 2022, indicating a better liquidity position. The ratio experienced some ups and downs over the next few years but generally remained above 0.1, except for a few quarters where it dropped below this threshold.
Overall, Pool Corporation's quick ratio trend suggests some variability in its liquidity position, with periods of both strength and weakness. Further analysis of the company's asset composition and current liabilities would be necessary to better understand the fluctuations in the quick ratio and assess the company's overall financial health.