Patrick Industries Inc (PATK)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,467,453	3,638,773	3,884,790	4,439,795	4,886,925	5,082,490	5,030,580	4,574,840	4,076,324	3,701,457	3,341,984	2,746,079	2,484,874	2,261,721	2,127,200	2,316,373	2,335,411	2,317,162	2,326,115	2,317,776
Property, plant and equipment	US$ in thousands	353,625	358,266	363,261	353,599	350,572	343,262	339,624	328,003	319,493	309,170	298,022	256,213	251,493	197,415	184,797	189,129	180,849	179,884	181,523	180,331
Fixed asset turnover		9.81	10.16	10.69	12.56	13.94	14.81	14.81	13.95	12.76	11.97	11.21	10.72	9.88	11.46	11.51	12.25	12.91	12.88	12.81	12.85

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,467,453K ÷ $353,625K
= 9.81

Patrick Industries, Inc.'s fixed asset turnover ratio has shown a declining trend over the past eight quarters, from 14.80 in Q2 2022 to 9.81 in Q4 2023. This indicates that the company's ability to generate revenue from its fixed assets has decreased over time. The significant drop in fixed asset turnover from Q2 2022 to Q4 2023 suggests a potential inefficiency in utilizing fixed assets to generate sales. Management should investigate the reasons behind this trend and consider strategies to improve the utilization of fixed assets to enhance revenue generation and profitability.