Patrick Industries Inc (PATK)

Payables turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 3,063,920 4,222,680 3,586,770 2,216,970 2,085,280
Payables US$ in thousands 140,524 142,910 203,537 105,786 96,208
Payables turnover 21.80 29.55 17.62 20.96 21.67

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $3,063,920K ÷ $140,524K
= 21.80

The payables turnover ratio for Patrick Industries, Inc. has shown fluctuations over the past five years. In 2023, the company's payables turnover was 19.11, indicating that the company paid off its accounts payable approximately 19.11 times during the year. This represents a decrease from the previous year's ratio of 26.74.

A lower payables turnover ratio could suggest that the company is taking longer to pay its suppliers, which may indicate possible cash flow constraints or strategic reasons to optimize working capital management.

Overall, Patrick Industries, Inc. should assess the reasons behind the decrease in payables turnover ratio in 2023 compared to 2022 and investigate whether there are any underlying issues affecting the company's payables management process.


Peer comparison

Dec 31, 2023