Patrick Industries Inc (PATK)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,466,390	4,885,580	4,070,100	2,470,640	2,330,060
Receivables	US$ in thousands	163,838	172,890	172,392	132,505	87,536
Receivables turnover		21.16	28.26	23.61	18.65	26.62

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,466,390K ÷ $163,838K
= 21.16

The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by comparing net credit sales to average accounts receivable during a period. In the case of Patrick Industries, Inc., the receivables turnover ratio has fluctuated over the past five years, ranging from 17.89 to 26.35.

A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly, which is generally favorable as it implies efficient credit management and liquidity. Conversely, a lower ratio may suggest slower collections and potential liquidity issues.

In Patrick Industries' case, the decreasing trend in the receivables turnover ratio from 2019 to 2020 followed by an increase in 2021 and a subsequent decrease in 2022 could indicate changes in the company's credit policies, customer payment behaviors, or sales volumes.

Overall, while the company experienced fluctuations in its receivables turnover ratio in recent years, further analysis of the underlying factors driving these changes and comparison with industry benchmarks would provide additional insights into the efficiency of Patrick Industries' accounts receivable management.