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