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Pool (POOL) Beneish M-Score : -2.88 (As of Mar. 20, 2025)


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What is Pool Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Pool's Beneish M-Score or its related term are showing as below:

POOL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.34   Max: -1.38
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Pool was -1.38. The lowest was -2.94. And the median was -2.34.


Pool Beneish M-Score Historical Data

The historical data trend for Pool's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pool Beneish M-Score Chart

Pool Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.17 -1.38 -2.21 -2.94 -2.88

Pool Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.94 -3.03 -2.84 -2.80 -2.88

Competitive Comparison of Pool's Beneish M-Score

For the Industrial Distribution subindustry, Pool's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pool's Beneish M-Score Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Pool's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pool's Beneish M-Score falls into.



Pool Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pool for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9581+0.528 * 1.0099+0.404 * 1.0082+0.892 * 0.9584+0.115 * 0.9475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0944+4.679 * -0.06676-0.327 * 0.9978
=-2.88

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $315 Mil.
Revenue was 987.479 + 1432.879 + 1769.784 + 1120.81 = $5,311 Mil.
Gross Profit was 290.243 + 416.403 + 530.141 + 338.56 = $1,575 Mil.
Total Current Assets was $1,729 Mil.
Total Assets was $3,368 Mil.
Property, Plant and Equipment(Net PPE) was $566 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General, & Admin. Expense(SGA) was $958 Mil.
Total Current Liabilities was $844 Mil.
Long-Term Debt & Capital Lease Obligation was $1,124 Mil.
Net Income was 37.3 + 125.701 + 192.439 + 78.885 = $434 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 170.567 + 316.517 + 26.66 + 145.442 = $659 Mil.
Total Receivables was $343 Mil.
Revenue was 1003.05 + 1474.407 + 1857.363 + 1206.774 = $5,542 Mil.
Gross Profit was 293.775 + 428.731 + 567.783 + 369.755 = $1,660 Mil.
Total Current Assets was $1,815 Mil.
Total Assets was $3,428 Mil.
Property, Plant and Equipment(Net PPE) was $530 Mil.
Depreciation, Depletion and Amortization(DDA) was $40 Mil.
Selling, General, & Admin. Expense(SGA) was $913 Mil.
Total Current Liabilities was $771 Mil.
Long-Term Debt & Capital Lease Obligation was $1,237 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(314.861 / 5310.952) / (342.91 / 5541.594)
=0.059285 / 0.061879
=0.9581

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1660.044 / 5541.594) / (1575.347 / 5310.952)
=0.299561 / 0.296622
=1.0099

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (1729.114 + 566.177) / 3368.184) / (1 - (1815.36 + 529.617) / 3428.068)
=0.318538 / 0.315948
=1.0082

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=5310.952 / 5541.594
=0.9584

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(40.14 / (40.14 + 529.617)) / (45.481 / (45.481 + 566.177))
=0.070451 / 0.074357
=0.9475

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(958.143 / 5310.952) / (913.477 / 5541.594)
=0.180409 / 0.16484
=1.0944

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1124.166 + 844.186) / 3368.184) / ((1237.066 + 770.766) / 3428.068)
=0.584396 / 0.585704
=0.9978

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(434.325 - 0 - 659.186) / 3368.184
=-0.06676

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Pool has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.


Pool Business Description

Traded in Other Exchanges
Address
109 Northpark Boulevard, Covington, LA, USA, 70433-5001
Pool Corp distributes swimming pool supplies and related products. Its products include non-discretionary pool-maintenance products, like chemicals and replacement parts, as well as pool equipment, like packaged pools (kits to build swimming pools), cleaners, filters, heaters, pumps, and lights. Customers include pool builders and remodelers, independent retail stores, and pool repair and service companies.
Executives
Perez De La Mesa Manuel J director, officer: President/CEO
Jennifer M Neil officer: Secretary SCP POOL CORPORATION, 109 NORTHPARK BLVD, COVINGTON LA 70433
Hart Melanie Housey officer: Chief Accounting Officer POOL CORPORATION, 109 NORTHPARK BLVD, COVINGTON LA 70433
Kristopher Robert Neff officer: Vice President, Strategy & Cor 429 HAMPTON TERRACE, LIBERTYVILLE IL 60048
Walker Saik officer: Corporate Controller 5202 CHESTNUT ST, NEW ORLEANS LA 70115
Ilya Mihaly officer: Vice President - Operations & 10703 BEAGLE RUN PL, TAMPA FL 33626
James D Hope director 1390 ENCLAVE PARKWAY, HOUSTON TX 77077
Carlos A. Sabater director 1140 ALFONSO AVENUE, CORAL GABLES FL 33146
Peter D Arvan officer: EXECUTIVE VICE PRESIDENT 2537 ST. JAMES DRIVE, UNIT 507, SOUTHPORT NC 28461
Martha S Gervasi director 610 BOWSPRIT LANE, LONGBOAT KEY FL 34228
Robert C Sledd director 9201 FOREST HILL AVENUE, RICHMOND VA 23235
Mark W Joslin officer: Chief Financial Officer SCP POOL CORPORATION, 109 NORTHPARK BLVD, COVINGTON LA 70433
St Romain Kenneth G officer: Group Vice President POOL CORPORATION, 109 NORTHPARK BLVD, COVINGTON LA 70433
David B. Collier officer: VP OPERATIONS & SUPPLY CHAIN 720 EVENING STAR LN, CASTLE ROCK CO 80108
Arthur D Cook officer: Vice President