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.