Pool Corporation (POOL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,273,460 | 1,312,790 | 1,235,190 | 1,071,390 | 639,470 |
| ROE | 34.11% | 39.86% | 60.59% | 60.73% | 57.35% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $434,325K ÷ $1,273,460K
= 34.11%
Pool Corporation's return on equity (ROE) has exhibited fluctuations over the years, as seen in the data provided. The ROE increased from 57.35% in December 31, 2020, to 60.73% in December 31, 2021, indicating improved efficiency in generating profits from shareholders' equity.
However, there was a slight decrease in ROE to 60.59% by December 31, 2022. This suggests that the company may have experienced challenges in maintaining or further enhancing its profitability relative to the equity invested by shareholders.
A more pronounced decline in ROE was observed in the following years, dropping to 39.86% by December 31, 2023, and further down to 34.11% by December 31, 2024. These decreases could signal potential issues with the company's ability to generate returns on equity, possibly due to factors such as increased expenses, lower revenue growth, or changes in capital structure.
Overall, Pool Corporation's ROE trend warrants further investigation to understand the underlying reasons for the fluctuations and to assess the company's financial performance and efficiency in utilizing shareholders' equity effectively across the years.