Pool Corporation (POOL)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 566,954 | 583,976 | 600,822 | 653,502 | 688,137 | 712,710 | 784,036 | 884,284 | 984,873 | 1,019,174 | 1,001,963 | 928,221 | 824,145 | 769,320 | 680,733 | 547,324 | 451,674 | 400,949 | 353,619 | 316,504 |
| Revenue (ttm) | US$ in thousands | 5,310,949 | 5,326,520 | 5,368,050 | 5,455,630 | 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 |
| Pretax margin | 10.68% | 10.96% | 11.19% | 11.98% | 12.42% | 12.65% | 13.58% | 14.80% | 15.94% | 16.65% | 16.94% | 16.44% | 15.56% | 15.09% | 14.10% | 12.67% | 11.47% | 10.90% | 10.28% | 9.65% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $566,954K ÷ $5,310,949K
= 10.68%
Pool Corporation's pretax margin has shown a generally positive trend over the past few years. It increased steadily from 9.65% on March 31, 2020, to a peak of 16.94% on June 30, 2022. However, there was a slight decline in the pretax margin in the following quarters, with a dip to 10.68% by December 31, 2024.
The pretax margin measures the company's profitability before taxes relative to its total revenue. A higher pretax margin indicates that the company is operating more efficiently and generating more profits from its core operations.
It is worth noting that while the pretax margin peaked in mid-2022, there was a subsequent decline, which may be a cause for further investigation into factors impacting profitability during that period. Monitoring the pretax margin consistently can help assess Pool Corporation's financial health and operational efficiency.