Patrick Industries Inc (PATK)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 11,409 | 22,847 | 122,849 | 44,767 | 139,390 |
| Short-term investments | US$ in thousands | — | — | — | — | 1,409 |
| Total current liabilities | US$ in thousands | 308,496 | 367,240 | 432,777 | 227,389 | 186,935 |
| Cash ratio | 0.04 | 0.06 | 0.28 | 0.20 | 0.75 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,409K
+ $—K)
÷ $308,496K
= 0.04
The cash ratio of Patrick Industries, Inc. has experienced fluctuations over the past five years. The trend shows a decline from 0.86 in 2019 to 0.17 in 2023. This indicates a decrease in the company's ability to cover its short-term liabilities with its available cash and equivalents.
The decrease in the cash ratio may suggest that the company has been using its cash reserves for investments, acquisitions, or other strategic initiatives rather than maintaining a higher level of liquidity. This strategy could imply a higher risk profile for the company in terms of meeting its short-term obligations.
Overall, the downward trend in the cash ratio for Patrick Industries, Inc. raises concerns about its liquidity position and its ability to weather unforeseen financial challenges in the future. Further analysis of the company's cash management practices and financial strategy would be necessary to fully assess the implications of this trend.
Peer comparison
Dec 31, 2023