Pool Corporation (POOL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,312,790 | 1,418,230 | 1,458,530 | 1,256,750 | 1,235,190 | 1,190,880 | 1,229,060 | 1,174,280 | 1,071,390 | 985,212 | 874,748 | 657,928 | 639,470 | 589,501 | 486,791 | 348,398 | 410,180 | 405,970 | 343,169 | 224,877 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $523,229K ÷ $1,312,790K
= 39.86%
Pool Corporation's return on equity (ROE) has demonstrated a downward trend over the past eight quarters. ROE declined from 60.26% in Q4 2022 to 39.65% in Q4 2023. This indicates a decrease in the company's ability to generate profits from shareholders' equity during this period. The highest ROE was reported in Q1 2023 at 53.09%, but it has since declined in subsequent quarters.
Despite the fluctuation in ROE, Pool Corporation has maintained relatively strong performance with ROE consistently above 30% in all quarters. This suggests that the company is effectively utilizing its equity to generate profits for shareholders.
It is important for investors to further investigate the factors contributing to the fluctuations in ROE to determine the long-term sustainability of Pool Corporation's profitability and growth prospects. Additional analysis of the company's financial statements and operational performance may provide further insights into the drivers of ROE and the overall financial health of the company.