Patrick Industries Inc (PATK)

Payables 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
Cost of revenue (ttm)	US$ in thousands	2,961,759	3,118,744	3,340,741	3,789,282	4,222,676	4,389,991	4,341,679	3,973,931	3,586,770	3,255,438	2,942,034	2,445,892	2,219,024	2,026,922	1,871,158	2,019,147	2,042,277	1,552,521	1,601,311	1,592,693
Payables	US$ in thousands	140,524	148,239	130,406	149,260	142,910	188,691	219,315	240,694	203,537	219,153	164,646	154,291	105,786	117,088	115,838	138,146	96,208	117,862	118,147	124,640
Payables turnover		21.08	21.04	25.62	25.39	29.55	23.27	19.80	16.51	17.62	14.85	17.87	15.85	20.98	17.31	16.15	14.62	21.23	13.17	13.55	12.78

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,961,759K ÷ $140,524K
= 21.08

The payables turnover ratio for Patrick Industries, Inc. has been fluctuating over the past eight quarters. The ratio measures how efficiently the company is managing its accounts payable by analyzing how many times the company pays off its suppliers during a specific period.

In Q4 2023 and Q3 2023, the payables turnover ratios were relatively stable at 19.11 and 19.12 respectively. This indicates that the company paid off its suppliers approximately 19 times during those quarters. In the earlier quarters of 2023, the payables turnover ratios increased to 23.34 in Q2 and 23.32 in Q1, suggesting a more efficient management of accounts payable during that period.

Comparing the most recent ratios to the same periods in the prior year, we see a decrease in efficiency. For example, in Q4 2023, the payables turnover ratio was 26.74, which was higher than in the most recent quarter. This indicates that the company took longer to pay off its suppliers in Q4 2023 compared to Q4 2022.

Overall, the trend in the payables turnover ratio for Patrick Industries, Inc. shows some variability, with periods of higher and lower efficiency in managing its accounts payable. A declining ratio may suggest that the company is taking longer to pay its suppliers, which could have a potential impact on its working capital management and supplier relationships.