Patrick Industries Inc (PATK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,466,390 | 4,885,580 | 4,070,100 | 2,470,640 | 2,330,060 |
| Property, plant and equipment | US$ in thousands | 353,625 | 350,572 | 319,493 | 251,493 | 180,849 |
| Fixed asset turnover | 9.80 | 13.94 | 12.74 | 9.82 | 12.88 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,466,390K ÷ $353,625K
= 9.80
The fixed asset turnover ratio measures how effectively a company generates sales revenue from its investment in fixed assets.
Looking at Patrick Industries, Inc.'s fixed asset turnover over the last five years, we observe fluctuations in the ratio. In 2023, the fixed asset turnover ratio decreased to 9.81 from 13.93 in 2022. This indicates that the company generated $9.81 in sales revenue for every $1 invested in fixed assets in 2023.
The significant decrease in the fixed asset turnover from 2022 to 2023 could be attributed to various factors such as changes in sales volume, asset utilization efficiency, or the composition of fixed assets. It may suggest that the company's fixed assets are not being utilized as efficiently to generate sales in 2023 compared to the previous year.
Further analysis and comparison with industry benchmarks or the company's historical performance could provide more insights into the reasons behind the fluctuation in the fixed asset turnover ratio and help assess the overall operational efficiency and asset management of Patrick Industries, Inc.
Peer comparison
Dec 31, 2023