Pool Corporation (POOL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 617,204 | 747,117 | 1,025,780 | 832,784 | 464,027 |
| Total assets | US$ in thousands | 3,368,180 | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 |
| Operating ROA | 18.32% | 21.79% | 28.77% | 25.78% | 26.67% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $617,204K ÷ $3,368,180K
= 18.32%
The operating return on assets (operating ROA) for Pool Corporation has shown a fluctuating trend over the years based on the provided data. In December 31, 2020, the operating ROA was at 26.67%, indicating that the company generated $0.2667 in operating profit for every dollar of assets. The following year, the operating ROA decreased slightly to 25.78%, suggesting a dip in operational efficiency.
However, the trend reversed in December 31, 2022, with operating ROA increasing to 28.77%, showcasing an improvement in the company's ability to generate profits from its assets. Unfortunately, by December 31, 2023, the operating ROA dropped to 21.79%, signaling a decline in profitability relative to its asset base.
The latest data point reveals a more significant decrease in operating ROA, with a figure of 18.32% as of December 31, 2024. This decline may indicate challenges in effectively utilizing assets to generate operating income.
Overall, the fluctuating pattern in operating ROA suggests that Pool Corporation's operational efficiency and profitability in relation to its asset base have varied over the years, requiring further investigation into the underlying factors driving these changes.