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.
Peer comparison
Dec 31, 2023