Pool Corporation (POOL)

Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.

Pool Corporation's interest coverage ratio has shown fluctuations over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was 37.56, indicating that the company was generating sufficient earnings to cover its interest expenses approximately 37.56 times. This suggests a comfortable financial position.

By December 31, 2021, the interest coverage ratio significantly improved to 96.40, showcasing a considerable increase in the company's ability to cover its interest payments. This could be interpreted as a sign of enhanced financial health and stability.

However, in the following years, Pool Corporation's interest coverage ratio experienced a decline. By December 31, 2024, the ratio had decreased to 12.28, indicating a potential decrease in the company's ability to cover its interest expenses compared to previous years.

Overall, it is essential for investors and stakeholders to monitor Pool Corporation's interest coverage ratio closely to assess the company's financial resilience and its ability to meet its debt obligations. A declining interest coverage ratio may raise concerns about the company's financial health and sustainability.