Patrick Industries Inc (PATK)

Working capital 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
Revenue (ttm)	US$ in thousands	3,467,453	3,638,773	3,884,790	4,439,795	4,886,925	5,082,490	5,030,580	4,574,840	4,076,324	3,701,457	3,341,984	2,746,079	2,484,874	2,261,721	2,127,200	2,316,373	2,335,411	2,317,162	2,326,115	2,317,776
Total current assets	US$ in thousands	734,631	811,253	833,863	954,478	909,904	1,107,420	1,223,370	1,174,400	974,075	862,785	763,624	591,835	528,063	531,834	537,453	548,914	516,834	528,004	411,684	428,523
Total current liabilities	US$ in thousands	308,496	335,814	307,130	332,680	367,240	435,904	473,411	496,315	432,777	409,473	328,792	299,849	227,389	252,949	218,537	236,203	186,935	202,275	205,098	217,806
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,467,453K ÷ ($734,631K – $308,496K)
= 8.14

The working capital turnover of Patrick Industries, Inc. has been relatively stable over the past eight quarters, ranging from a low of 6.70 in Q2 2022 to a high of 9.00 in Q4 2022. This ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio signifies that the company is efficiently utilizing its current assets to support sales.

In the most recent quarter, Q4 2023, the working capital turnover ratio was 8.14, which indicates that the company generated $8.14 in sales for every dollar of working capital invested. This reflects a strong efficiency in managing its working capital to drive revenue growth.

Overall, the upward trend in the working capital turnover ratio from Q2 2022 to Q4 2022 suggests that Patrick Industries has improved its efficiency in utilizing working capital to support its operations and generate sales. However, analysts should continue to monitor this ratio to ensure that the company maintains its efficiency in managing working capital effectively.