Pool Corporation (POOL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.96% | 29.85% | 30.42% | 31.07% | 31.29% | 31.70% | 31.75% | 31.22% | 30.54% | 30.08% | 29.43% | 28.76% | 28.73% | 28.64% | 28.59% | 28.66% | 28.91% | 29.22% | 29.30% | 29.20% |
| Operating profit margin | 13.47% | 13.75% | 14.61% | 15.67% | 16.60% | 17.10% | 17.24% | 16.64% | 15.73% | 15.28% | 14.30% | 12.90% | 11.79% | 11.29% | 10.81% | 10.32% | 10.67% | 10.80% | 10.71% | 10.59% |
| 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% |
| Net profit margin | 9.44% | 9.65% | 10.32% | 11.23% | 12.11% | 12.82% | 13.17% | 12.95% | 12.29% | 11.81% | 11.12% | 10.06% | 9.32% | 8.85% | 8.32% | 7.92% | 8.18% | 8.24% | 8.14% | 7.83% |
The profitability ratios of Pool Corporation have shown a decline over the quarters in 2023. The gross profit margin has gradually decreased from 31.29% in Q4 2022 to 29.96% in Q4 2023, indicating a decrease in the company's ability to generate profits from its core business operations.
Similarly, the operating profit margin has also experienced a downward trend, declining from 16.61% in Q4 2022 to 13.47% in Q4 2023. This suggests that Pool Corporation's efficiency in managing its operating expenses and generating profits has weakened throughout the quarters in 2023.
The pretax margin, which reflects the company's profitability before considering taxes, has followed a similar pattern of decline, falling from 15.94% in Q4 2022 to 12.42% in Q4 2023. This indicates that Pool Corporation's profitability has decreased when accounting for all expenses except taxes.
Lastly, the net profit margin, representing the company's bottom line profitability after all expenses, has also shown a decreasing trend, dropping from 12.04% in Q4 2022 to 9.39% in Q4 2023. This indicates that Pool Corporation's overall profitability has been eroding over the quarters in 2023.
In summary, the profitability ratios of Pool Corporation have exhibited a negative trend in 2023, signaling a potential decline in the company's ability to generate profits and manage its expenses effectively. Further analysis and examination of the company's financial performance and operational efficiency may be warranted to identify the underlying causes of this decline and implement necessary corrective actions.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.78% | 22.58% | 22.93% | 24.23% | 28.77% | 28.37% | 25.74% | 24.20% | 25.78% | 34.14% | 31.17% | 26.03% | 26.67% | 26.17% | 22.47% | 19.36% | 23.01% | 23.05% | 19.47% | 18.99% |
| Return on assets (ROA) | 15.26% | 15.85% | 16.19% | 17.37% | 20.99% | 21.26% | 19.66% | 18.84% | 20.14% | 26.39% | 24.24% | 20.29% | 21.08% | 20.51% | 17.28% | 14.87% | 17.64% | 17.58% | 14.79% | 14.05% |
| Return on total capital | 32.07% | 32.08% | 32.37% | 36.14% | 39.50% | 38.88% | 36.36% | 35.34% | 37.13% | 58.27% | 53.60% | 51.68% | 44.46% | 45.27% | 40.59% | 36.86% | 37.51% | 36.26% | 32.55% | 35.33% |
| Return on equity (ROE) | 39.86% | 38.33% | 40.85% | 53.38% | 60.59% | 65.85% | 63.37% | 62.27% | 60.73% | 61.12% | 61.35% | 66.04% | 57.35% | 55.23% | 58.76% | 74.58% | 63.77% | 64.13% | 72.88% | 104.84% |
Pool Corporation's profitability ratios have shown some fluctuations over the quarters analyzed.
- Operating return on assets (Operating ROA) has varied between 21.78% to 28.79%, indicating the company's ability to generate operating income from its assets has been relatively stable.
- Return on assets (ROA) has shown a similar trend, ranging from 15.18% to 21.04%, suggesting the company's overall profitability in relation to its total assets has been consistent, although slightly lower than the operating profitability.
- Return on total capital has fluctuated between 31.56% to 39.16%, which highlights the company's ability to generate returns on both equity and debt capital employed in its operations.
- Return on equity (ROE) has displayed significant variability from 38.13% to 65.17%, with a notable peak in Q1 2023. This indicates that the company has been efficient in generating returns for its equity shareholders, albeit with some fluctuations.
Overall, Pool Corporation's profitability ratios demonstrate a strong performance in terms of generating returns from its assets, capital, and equity. However, analysts should closely monitor the fluctuations in ROE to assess the sustainability of the company's profitability in the long term.