Pool Corporation (POOL)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 746,567 | 1,025,780 | 832,784 | 464,027 | 341,246 |
| Total assets | US$ in thousands | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 | 1,483,270 |
| Operating ROA | 21.78% | 28.77% | 25.78% | 26.67% | 23.01% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $746,567K ÷ $3,428,070K
= 21.78%
Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. Pool Corporation's operating ROA has shown fluctuations over the past five years.
In 2023, Pool Corporation's operating ROA was 21.78%, which indicates the company generated $0.2178 in operating income for every dollar of assets. This represents a decrease from 2022 when the operating ROA was 28.79%. Despite the decline, the company's ability to generate operating income from its assets remains strong.
Comparing to 2021 and 2020, when the operating ROA was 25.70% and 27.07% respectively, the current figure of 21.78% in 2023 seems less favorable. However, it is worth noting that the company's operating ROA in 2023 is higher than in 2019, when it stood at 23.01%.
Overall, although there has been a slight dip in Pool Corporation's operating ROA in 2023 compared to the previous year, the company still demonstrates efficiency in generating operating income relative to its asset base. It is important for Pool Corporation to continue monitoring and managing its asset utilization to maintain and potentially improve its operating ROA in the future.