Pool Corporation (POOL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 523,229 | 748,462 | 650,624 | 366,738 | 261,575 |
| Total assets | US$ in thousands | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 | 1,483,270 |
| ROA | 15.26% | 20.99% | 20.14% | 21.08% | 17.64% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $523,229K ÷ $3,428,070K
= 15.26%
Pool Corporation's return on assets (ROA) has exhibited fluctuating trends over the past five years. The ROA decreased from 17.64% in 2019 to 21.08% in 2020, signaling an initial positive trend. However, there was a subsequent decline in ROA to 20.01% in 2021 before a slight recovery to 20.88% in 2022. The most recent data for 2023 indicates a further decrease to 15.18%.
This fluctuation in ROA could suggest varying levels of efficiency in asset utilization and profitability over the years. A declining ROA could indicate decreased profitability relative to the size of the assets as seen in the most recent year. It is essential for Pool Corporation to closely monitor and assess the factors contributing to these fluctuations to maintain sustainable levels of profitability and efficient asset management in the future.