Patrick Industries Inc (PATK)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	11,409	16,450	33,911	30,783	22,847	53,269	77,025	63,846	122,849	44,882	58,402	6,171	44,767	62,347	111,062	94,523	139,390	116,712	23,572	8,454
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	1,409	—	—	—
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
Cash ratio		0.04	0.05	0.11	0.09	0.06	0.12	0.16	0.13	0.28	0.11	0.18	0.02	0.20	0.25	0.51	0.40	0.75	0.58	0.11	0.04

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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. It indicates the proportion of a company's current assets that are in the form of cash or can be quickly converted into cash to meet its short-term obligations.

For Patrick Industries, Inc., the cash ratio has fluctuated over the last eight quarters, ranging from 0.15 to 0.27. A higher cash ratio is generally preferred as it suggests a company is more capable of meeting its short-term obligations.

In Q4 2023, the cash ratio was 0.17, indicating that for every dollar of current liabilities, Patrick Industries had $0.17 in cash or cash equivalents available to cover those obligations. This is slightly below the ratios in Q2 and Q3 2023 but higher than in Q4 2022.

Overall, the trend in Patrick Industries' cash ratio shows some variability, which could be influenced by the company's cash management practices, changes in operating cash flows, or investment decisions. Further investigation into the company's liquidity position and cash management strategies may provide additional insights into its financial health.