Pool Corporation (POOL)

Solvency ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Debt-to-assets ratio	0.30	0.38	0.36	0.23	0.34
Debt-to-capital ratio	0.44	0.52	0.52	0.39	0.55
Debt-to-equity ratio	0.77	1.10	1.09	0.63	1.22
Financial leverage ratio	2.61	2.89	3.01	2.72	3.62

Pool Corporation's solvency ratios reflect the company's ability to meet its long-term financial obligations. The trend in the debt-to-assets ratio decreased from 0.34 in 2019 to 0.31 in 2023, indicating a reduction in the proportion of assets financed by debt. This suggests improved financial stability and lower financial risk.

The debt-to-capital ratio also exhibited a declining trend from 0.55 in 2019 to 0.45 in 2023, indicating a lower reliance on debt to finance the company's operations. This implies improved financial health and a greater capacity to withstand economic challenges.

The debt-to-equity ratio decreased from 1.25 in 2019 to 0.80 in 2023, signaling a decreasing reliance on equity to fund the company's operations. This reduction indicates an enhanced ability to generate returns for equity shareholders and a reduced financial risk associated with heavy debt burdens.

The financial leverage ratio also showed a decreasing trend from 3.62 in 2019 to 2.61 in 2023. This indicates that the company's financial risk has decreased over the years as it has been able to reduce its reliance on debt to fund its operations.

Overall, Pool Corporation's solvency ratios have improved over the years, with decreasing levels of debt relative to assets, capital, and equity. This suggests that the company has managed its debt levels effectively, resulting in improved financial stability and reduced financial risk.

Coverage ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest coverage	12.60	25.07	96.40	37.56	14.35

To calculate Pool Corporation's interest coverage ratio, we need two key pieces of information: the company's earnings before interest and taxes (EBIT) and its interest expenses. However, without the specific values for these figures, the interest coverage ratio cannot be computed for the stated years.

Interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a stronger ability to cover interest expenses, while a lower ratio may signal potential financial distress. It is important to analyze Pool Corporation's interest coverage ratio over time to assess the company's financial health and liquidity position. Further information on EBIT and interest expenses would be necessary to provide a comprehensive analysis of the company's ability to cover its interest obligations.