Patrick Industries Inc (PATK)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 5.81 6.02 6.02 6.03 6.32 5.98 5.88 5.69 5.84 6.70 7.24 7.08 7.09 7.20 7.15 7.38 8.04 5.91 6.34 6.01
Receivables turnover 21.16 15.11 18.79 — 28.27 17.79 14.16 12.91 23.65 12.64 12.64 12.95 18.75 12.88 14.81 14.99 26.68 17.85 20.28 16.88
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
Working capital turnover 8.14 7.65 7.38 7.14 9.01 7.57 6.71 6.75 7.53 8.17 7.69 9.40 8.26 8.11 6.67 7.41 7.08 7.11 11.26 11.00

The activity ratios of Patrick Industries, Inc. provide key insights into the efficiency and effectiveness of the company's operations and management of working capital.

1. Inventory Turnover:
- The inventory turnover ratio has been consistently around 5.2 to 5.7 over the quarters, indicating that the company is able to sell and replace its inventory approximately 5.2 to 5.7 times a year.
- A lower inventory turnover ratio may suggest overstocking, while a higher ratio may indicate stockouts or strong sales.

2. Receivables Turnover:
- The receivables turnover ratio has shown some fluctuation, ranging from 12.89 to 26.35, over the quarters.
- A higher ratio reflects the company's ability to collect its receivables quickly, while a lower ratio may indicate issues with credit policies or collection efforts.

3. Payables Turnover:
- The payables turnover ratio has varied between 15.10 to 26.74, indicating the speed at which the company is paying its suppliers.
- A higher ratio may indicate favorable credit terms or efficient cash management, while a lower ratio could signal potential liquidity challenges or strained supplier relationships.

4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated between 6.70 to 9.00, reflecting how efficiently the company utilizes its working capital to generate sales.
- A higher ratio suggests effective management of working capital, while a lower ratio may indicate inefficiencies in utilizing resources or potential liquidity issues.

Overall, analyzing these activity ratios together provides a comprehensive view of Patrick Industries, Inc.'s operational efficiency, inventory management, receivables collection, payables management, and working capital utilization across different quarters.

Average number of days

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
Days of inventory on hand (DOH) days 62.87 60.58 60.62 60.53 57.73 61.02 62.12 64.18 62.52 54.46 50.40 51.52 51.45 50.67 51.05 49.45 45.37 61.73 57.59 60.73
Days of sales outstanding (DSO) days 17.25 24.16 19.43 — 12.91 20.52 25.78 28.28 15.44 28.89 28.87 28.17 19.46 28.33 24.64 24.36 13.68 20.45 18.00 21.62
Number of days of payables days 17.32 17.35 14.25 14.38 12.35 15.69 18.44 22.11 20.71 24.57 20.43 23.02 17.40 21.08 22.60 24.97 17.19 27.71 26.93 28.56

The activity ratios of Patrick Industries, Inc. indicate how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows that the company is taking slightly longer to sell its inventory over time, with a slight increase from Q1 to Q4 of 2023. This may suggest that the company's inventory management could be improving as it tries to minimize excess inventory levels.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect payment after making a sale. In this case, the trend shows an increase in DSO from Q1 to Q3 of 2023, indicating a lengthening collection period. This may imply that the company is facing challenges in collecting receivables promptly.

3. Number of Days of Payables: The trend in the number of days of payables shows a decrease from Q1 to Q4 of 2023, indicating that the company is taking fewer days to pay its suppliers. This could imply that Patrick Industries, Inc. is managing its payables more efficiently, possibly negotiating better payment terms.

Overall, while the company seems to be managing its payables effectively, there may be areas for improvement in inventory management and accounts receivable collection to enhance overall operational efficiency and cash flow.

Long-term

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
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
Total asset turnover 1.35 1.37 1.44 1.58 1.76 1.75 1.66 1.54 1.54 1.57 1.50 1.50 1.42 1.44 1.42 1.52 1.59 1.60 1.75 1.71

Long-term activity ratios provide insight into how efficiently a company is utilizing its fixed assets and total assets to generate sales revenue. In the case of Patrick Industries, Inc., the fixed asset turnover ratio has been consistently decreasing from Q1 2022 to Q4 2023, indicating a declining efficiency in generating sales from its fixed assets. The company generated $9.81 of sales for every dollar invested in fixed assets in Q4 2023, down from $13.93 in Q4 2022.

On the other hand, the total asset turnover ratio has also been declining over the same period, signaling that the company is becoming less efficient in generating sales from all its assets. In Q4 2023, Patrick Industries, Inc. generated $1.35 of sales for every dollar of total assets, down from $1.75 in Q4 2022.

Overall, both the fixed asset turnover and total asset turnover ratios for Patrick Industries, Inc. have been trending downwards, indicating a potential decrease in operational efficiency and effectiveness at utilizing assets to drive revenue generation.