Pool Corporation (POOL)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,368,180 | 3,367,390 | 3,640,910 | 3,758,830 | 3,428,070 | 3,430,730 | 3,680,580 | 3,862,830 | 3,565,440 | 3,688,060 | 3,962,100 | 3,882,140 | 3,230,130 | 2,282,230 | 2,214,040 | 2,141,690 | 1,739,670 | 1,587,590 | 1,654,800 | 1,747,780 |
| Total stockholders’ equity | US$ in thousands | 1,273,460 | 1,432,510 | 1,423,670 | 1,345,680 | 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 |
| Financial leverage ratio | 2.64 | 2.35 | 2.56 | 2.79 | 2.61 | 2.42 | 2.52 | 3.07 | 2.89 | 3.10 | 3.22 | 3.31 | 3.01 | 2.32 | 2.53 | 3.26 | 2.72 | 2.69 | 3.40 | 5.02 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,368,180K ÷ $1,273,460K
= 2.64
The financial leverage ratio of Pool Corporation has been fluctuating over the past few years, indicating changes in the company's debt levels relative to its equity. The ratio decreased from 5.02 as of March 31, 2020, to 2.32 as of September 30, 2021, reflecting a significant reduction in debt relative to equity. This trend continued as the ratio dropped to 2.42 as of September 30, 2023. However, there was a slight increase in the ratio to 2.64 as of December 31, 2024.
Overall, the decreasing trend in the financial leverage ratio from 2020 to 2023 suggests that Pool Corporation has been effectively managing its debt levels and increasing its equity position. The slight increase in the ratio in 2024 may indicate a strategic decision to take on slightly more debt relative to equity, perhaps to fund growth opportunities or investments.