Pool Corporation (POOL)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 688,313 | 713,070 | 784,408 | 884,614 | 985,225 | 1,019,467 | 1,002,258 | 928,495 | 824,436 | 769,592 | 680,999 | 547,607 | 451,970 | 401,249 | 353,909 | 316,789 | 317,737 | 316,717 | 305,066 | 295,009 |
| Revenue (ttm) | US$ in thousands | 5,541,590 | 5,634,460 | 5,775,390 | 5,973,850 | 6,179,730 | 6,119,370 | 5,915,480 | 5,647,490 | 5,295,580 | 5,099,281 | 4,827,061 | 4,320,081 | 3,936,629 | 3,679,602 | 3,438,872 | 3,279,352 | 3,199,520 | 3,160,368 | 3,073,179 | 3,009,649 |
| Pretax margin | 12.42% | 12.66% | 13.58% | 14.81% | 15.94% | 16.66% | 16.94% | 16.44% | 15.57% | 15.09% | 14.11% | 12.68% | 11.48% | 10.90% | 10.29% | 9.66% | 9.93% | 10.02% | 9.93% | 9.80% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $688,313K ÷ $5,541,590K
= 12.42%
The pretax margin of Pool Corporation has been gradually declining over the past eight quarters, from a high of 16.94% in Q3 2022 to 12.42% in Q4 2023. This indicates a decrease in the company's ability to generate profits before considering taxes on its income. The declining trend may suggest challenges in managing operating expenses and increasing competition, which could be impacting the company's overall profitability. Pool Corporation may need to closely monitor and address the factors contributing to this decline in pretax margin to ensure sustainable and profitable operations in the future.