Patrick Industries Inc (PATK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 5.26 | 5.72 | 5.33 | 6.48 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 7.92 | 8.14 | 9.00 | 7.53 | 8.27 |
Inventory turnover for Patrick Industries Inc has been gradually decreasing from 6.48 in December 31, 2020, to 5.22 in December 31, 2024. This indicates that the company is selling its inventory at a slower pace over the years.
Receivables turnover is not available for analysis as the data is marked as "—". This suggests that information on how quickly the company collects its accounts receivables is not provided in the dataset.
Payables turnover is also marked as "—," indicating that there is no information available on how fast the company pays its suppliers.
Working capital turnover has shown a slight fluctuation from 7.53 in December 31, 2021, to 9.00 in December 31, 2022, before decreasing to 7.92 in December 31, 2024. This ratio measures how effectively the company is using its working capital to generate sales, and the changes may indicate fluctuations in operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.91 | 69.33 | 63.78 | 68.43 | 56.31 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Patrick Industries Inc's activity ratios, we can analyze the following:
1. Days of Inventory on Hand (DOH)
- The days of inventory on hand measures how many days, on average, it takes for the company to sell its inventory.
- Patrick Industries Inc's DOH increased from 56.31 days in 2020 to 69.91 days in 2024. This indicates that, on average, the company took longer to sell its inventory over the years.
- A higher DOH could suggest inefficiencies in inventory management or potential issues with sales demand.
2. Days of Sales Outstanding (DSO)
- Unfortunately, there is no data provided for the days of sales outstanding for Patrick Industries Inc for the years 2020 to 2024.
- DSO measures how long it takes for the company to collect revenue after a sale. Ideally, a lower DSO indicates that the company is collecting payments faster.
3. Number of Days of Payables
- Similar to DSO, data for the number of days of payables is not available.
- The number of days of payables measures how long the company takes to pay its suppliers.
- A longer period suggests that the company is taking longer to pay its suppliers, which could indicate potential liquidity advantages but also strained relationships with suppliers.
In conclusion:
- The increasing trend in the days of inventory on hand for Patrick Industries Inc raises some concerns about its inventory management efficiency and potential sales challenges.
- Unfortunately, the lack of data for days of sales outstanding and number of days of payables limits the comprehensive analysis of the company's overall cash conversion cycle.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 13.93 | 8.54 | 9.89 |
| Total asset turnover | 1.23 | 1.35 | 1.75 | 1.54 | 1.42 |
The fixed asset turnover ratio measures a company's ability to generate sales using its fixed assets. In the case of Patrick Industries Inc, the fixed asset turnover has fluctuated over the years. In 2020, the ratio was 9.89, indicating that the company generated $9.89 in sales for every dollar invested in fixed assets. This ratio decreased to 8.54 in 2021, suggesting a slight decrease in efficiency in utilizing fixed assets.
However, there was a significant improvement in 2022, with the fixed asset turnover ratio increasing to 13.93, indicating that the company was able to generate higher sales relative to its investment in fixed assets. Unfortunately, data for 2023 and 2024 is not available for analysis.
Moving on to the total asset turnover ratio, which measures a company's ability to generate sales using all of its assets, including both fixed and current assets, we observe a mixed trend for Patrick Industries Inc. The total asset turnover ratio increased from 1.42 in 2020 to 1.54 in 2021, indicating improved efficiency in generating sales using total assets.
This trend continued in 2022, with the total asset turnover ratio further increasing to 1.75, suggesting that the company became more efficient in utilizing all of its assets to generate sales. However, there was a slight decline in 2023, with the ratio dropping to 1.35, and a further decrease in 2024 to 1.23, indicating potential challenges in generating sales relative to the total assets available.
In conclusion, while the fixed asset turnover ratio for Patrick Industries Inc has shown fluctuations, the company demonstrated overall improvements in utilizing its assets to generate sales, as reflected in the total asset turnover ratio. The company's ability to efficiently generate sales using its assets is a crucial factor in evaluating its long-term performance and operational efficiency.