Patrick Industries Inc (PATK)

Working capital 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
Total current assets	US$ in thousands	734,631	909,904	974,075	528,063	516,834
Total current liabilities	US$ in thousands	308,496	367,240	432,777	227,389	186,935
Working capital turnover		8.13	9.00	7.52	8.22	7.06

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,466,390K ÷ ($734,631K – $308,496K)
= 8.13

The working capital turnover ratio for Patrick Industries, Inc. has shown fluctuation over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2023, the working capital turnover ratio was 8.14, a decrease from the previous year's ratio of 9.00. This suggests that the company may have experienced challenges in efficiently utilizing its working capital to generate sales revenue.

Comparing this performance to earlier years, the ratio in 2023 was still higher than the ratios in 2021 and 2019, indicating an improvement in working capital efficiency from those years. However, the ratio was lower than in 2020, when it peaked at 8.27, indicating potentially less efficient working capital management in 2023 compared to 2020.

Overall, while the working capital turnover ratio for Patrick Industries, Inc. has fluctuated over the years, it is important for the company to focus on improving efficiency in utilizing its working capital to drive sales revenue in the future.