Patrick Industries Inc (PATK)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	2,926,889	2,889,879	2,849,903	2,751,012	2,705,413	2,834,404	3,061,857	3,499,730	3,840,704	4,010,282	3,967,891	3,634,777	3,276,898	2,986,738	2,701,932	2,236,780	2,027,580	1,847,418	1,742,059	1,892,292
Inventory	US$ in thousands	551,617	545,445	504,445	514,543	510,133	517,657	554,851	628,383	667,841	733,970	738,908	698,712	614,356	485,766	406,235	345,244	312,809	281,374	261,691	273,545
Inventory turnover		5.31	5.30	5.65	5.35	5.30	5.48	5.52	5.57	5.75	5.46	5.37	5.20	5.33	6.15	6.65	6.48	6.48	6.57	6.66	6.92

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,926,889K ÷ $551,617K
= 5.31

The inventory turnover for Patrick Industries Inc has shown a gradual decline over the years, indicating a decrease in the efficiency of managing its inventory. The ratio decreased from 6.92 on March 31, 2020, to 5.31 by December 31, 2024. This downward trend suggests that the company is taking longer to sell its inventory, which could potentially tie up capital and lead to higher carrying costs.

It is important for Patrick Industries Inc to closely monitor its inventory turnover ratio and take steps to improve inventory management efficiency. This could involve better forecasting of demand, reducing excess inventory levels, improving supply chain management, and implementing inventory control measures to optimize the use of working capital and improve overall profitability.