Pool Corporation (POOL)
Debt-to-equity 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-equity ratio | 0.77 | 0.70 | 0.79 | 1.06 | 1.10 | 1.26 | 1.28 | 1.26 | 1.09 | 0.36 | 0.47 | 0.64 | 0.63 | 0.56 | 0.88 | 1.64 | 1.22 | 1.32 | 1.95 | 3.01 |
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 for Pool Corporation has fluctuated over the past eight quarters, indicating varying levels of financial leverage. In Q4 2023, the ratio stood at 0.80, showing a decrease from the previous quarter. This suggests that the company's reliance on debt compared to equity has lessened, which could indicate improved financial stability.
In comparison to Q1 2023 where the ratio was 1.09, the current ratio of 0.80 indicates a significant reduction in debt relative to equity. Pool Corporation's debt-to-equity ratio is on a downward trend since Q1 2023, signaling a potential improvement in the company's financial health and risk profile.
It is essential to monitor the trend of the debt-to-equity ratio over time to assess Pool Corporation's ongoing financial management strategy and its ability to effectively balance debt and equity in its capital structure for sustainable growth.