Pool Corporation (POOL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 746,567 | 774,517 | 843,951 | 935,830 | 1,025,782 | 1,046,379 | 1,019,778 | 939,476 | 832,784 | 779,243 | 690,200 | 557,471 | 464,028 | 415,476 | 371,783 | 338,449 | 341,247 | 341,418 | 329,215 | 318,734 |
| Long-term debt | US$ in thousands | 1,015,120 | 996,109 | 1,148,370 | 1,332,670 | 1,361,760 | 1,500,340 | 1,575,670 | 1,483,810 | 1,171,580 | 352,075 | 413,058 | 420,762 | 404,149 | 328,225 | 429,246 | 569,697 | 499,662 | 535,720 | 668,363 | 677,243 |
| 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 |
| Return on total capital | 32.07% | 32.08% | 32.37% | 36.14% | 39.50% | 38.88% | 36.36% | 35.34% | 37.13% | 58.27% | 53.60% | 51.68% | 44.46% | 45.27% | 40.59% | 36.86% | 37.51% | 36.26% | 32.55% | 35.33% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $746,567K ÷ ($1,015,120K + $1,312,790K)
= 32.07%
Pool Corporation's return on total capital has shown a consistent and relatively high performance over the past eight quarters, ranging from 31.56% to 39.16%. This indicates the company's ability to generate a significant return on the total amount of capital employed in its operations.
Despite a slight fluctuation in the quarterly percentages, the average return on total capital remains strong, reflecting Pool Corporation's efficiency in utilizing its resources to generate profits. The decreasing trend from Q4 2022 to Q1 2023 might indicate a decrease in the company's profitability compared to the previous quarters. However, the return on total capital has generally remained above 30%, indicating a healthy financial performance.
Overall, Pool Corporation's return on total capital suggests effective management of capital investments and operational efficiency, which is fundamental for long-term sustainable growth and value creation for shareholders.