Pool Corporation (POOL)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 523,229 | 543,655 | 595,867 | 670,900 | 748,462 | 784,208 | 778,818 | 731,230 | 650,624 | 602,189 | 536,622 | 434,482 | 366,739 | 325,589 | 286,016 | 259,851 | 261,576 | 260,363 | 250,099 | 235,758 |
| Total assets | US$ in thousands | 3,428,070 | 3,430,730 | 3,680,580 | 3,862,830 | 3,565,440 | 3,688,060 | 3,962,100 | 3,882,140 | 3,230,130 | 2,282,230 | 2,214,040 | 2,141,690 | 1,739,670 | 1,587,590 | 1,654,800 | 1,747,780 | 1,483,270 | 1,481,410 | 1,690,580 | 1,678,350 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $523,229K ÷ $3,428,070K
= 15.26%
Pool Corporation's return on assets (ROA) has exhibited variability over the past eight quarters. The ROA ranged from a high of 21.04% in Q3 2022 to a low of 15.18% in Q4 2023. Overall, Pool Corporation's ROA has shown a general downward trend from 20.88% in Q4 2022 to 15.18% in Q4 2023.
A decreasing ROA may indicate that the company's profitability in generating earnings from its assets has been declining. This could be a cause for concern for investors and stakeholders as it suggests that Pool Corporation may be becoming less efficient in utilizing its assets to generate profits. It would be advisable for stakeholders to delve deeper into the company's financial performance and management strategies to understand the reasons behind the declining ROA and assess the potential risks associated with this trend.