Pool Corporation (POOL)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,312,790 | 1,235,190 | 1,071,390 | 639,470 | 410,180 |
| Debt-to-equity ratio | 0.77 | 1.10 | 1.09 | 0.63 | 1.22 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,015,120K ÷ $1,312,790K
= 0.77
The debt-to-equity ratio of Pool Corporation has fluctuated over the past five years, indicating varying levels of financial leverage during this period. In 2023, the ratio stands at 0.80, reflecting a decline from the previous year. This suggests that the company has reduced its reliance on debt relative to equity in financing its operations compared to the prior year.
In 2022 and 2021, the debt-to-equity ratio was relatively high at 1.12 and 1.10, respectively, indicating a higher proportion of debt in the company's capital structure. This may signal higher financial risk and potentially increased interest expense for the company during those years.
Conversely, in 2020, the ratio dropped significantly to 0.65, indicating a lower debt burden and a higher proportion of equity financing. This could indicate improved financial stability and lower interest payment obligations for the company that year.
Lastly, in 2019, the debt-to-equity ratio was at its highest at 1.25, suggesting a higher reliance on debt to fund operations compared to the other years analyzed. This could imply heightened financial risk and increased interest expenses for Pool Corporation during that period.
Overall, the fluctuation in Pool Corporation's debt-to-equity ratio over the years indicates varying levels of financial leverage and capital structure decisions, which can impact the company's financial risk profile and cost of capital.