Pool Corporation (POOL)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,015,120 | 1,361,760 | 1,171,580 | 404,149 | 499,662 |
| Total assets | US$ in thousands | 3,428,070 | 3,565,440 | 3,230,130 | 1,739,670 | 1,483,270 |
| Debt-to-assets ratio | 0.30 | 0.38 | 0.36 | 0.23 | 0.34 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,015,120K ÷ $3,428,070K
= 0.30
The debt-to-assets ratio for Pool Corporation has fluctuated over the past five years, ranging from 0.24 to 0.39. The ratio decreased from 0.34 in 2019 to 0.24 in 2020, indicating a reduction in the company's reliance on debt to finance its assets. However, the ratio then increased to 0.37 in 2021 and further to 0.39 in 2022, which suggests an increase in debt relative to assets during these periods.
The ratio improved slightly in 2023 to 0.31, indicating a lower level of debt relative to assets compared to the previous two years. Overall, the trend in the debt-to-assets ratio reflects fluctuations in Pool Corporation's debt management and asset financing strategies over the years. Further analysis of the company's financial position and capital structure would provide deeper insights into the reasons behind these fluctuations and the potential implications for the company's financial performance and risk profile.