Pool Corporation (POOL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 434,325 | 523,229 | 748,462 | 650,624 | 366,738 |
| Total assets | US$ in thousands | 3,368,180 | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 |
| ROA | 12.89% | 15.26% | 20.99% | 20.14% | 21.08% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $434,325K ÷ $3,368,180K
= 12.89%
Based on the provided data, Pool Corporation's return on assets (ROA) experienced a slight decline over the years. The ROA was 21.08% as of December 31, 2020, and decreased to 20.14% by December 31, 2021. However, it then slightly improved to 20.99% by December 31, 2022. There was a more significant drop in ROA to 15.26% by December 31, 2023, and a further decline to 12.89% by December 31, 2024.
The decreasing trend in ROA indicates that Pool Corporation may be facing challenges in generating profits relative to its total assets. It's essential for the company to analyze the reasons behind this decline and take appropriate measures to enhance its asset utilization efficiency and profitability. Further analysis of the company's financial and operational performance is recommended to identify areas for improvement in generating higher returns on its assets.