Pool Corporation (POOL)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.44	0.41	0.44	0.51	0.52	0.56	0.56	0.56	0.52	0.26	0.32	0.39	0.39	0.36	0.47	0.62	0.55	0.57	0.66	0.75

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,015,120K ÷ ($1,015,120K + $1,312,790K)
= 0.44

The debt-to-capital ratio of Pool Corporation has exhibited some fluctuation over the past eight quarters. The ratio started at 0.56 in Q1 2022 and remained constant in Q2 and Q3 2022 before slightly decreasing to 0.53 in Q4 2022. However, there was a noticeable increase in Q1 2023 to 0.52, followed by a further increase to 0.45 in Q2 and Q4 2023. The ratio then decreased to 0.42 in Q3 2023.

The overall trend indicates that Pool Corporation has been successfully managing its debt levels relative to its capital structure over the quarters analyzed. The lower debt-to-capital ratios suggest that the company has been reducing its reliance on debt to finance its operations, which could be seen as positive for its financial health and risk profile. However, the fluctuations in the ratio should be monitored to ensure stability and sustainability in the company's capital structure.