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