Patrick Industries Inc (PATK)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		2.38	2.48	2.25	2.32	2.76

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $734,631K ÷ $308,496K
= 2.38

The current ratio of Patrick Industries, Inc. has displayed some fluctuation over the past five years. The ratio stood at 2.38 as of December 31, 2023, which is slightly lower than the previous year's ratio of 2.48. Despite this slight decrease, the current ratio remains above 2, indicating that the company possesses an adequate level of current assets to cover its current liabilities.

In general, a current ratio above 2 is considered healthy as it suggests that the company can meet its short-term obligations comfortably. However, it is worth noting that a current ratio that is too high may indicate that the company is not efficiently utilizing its current assets. It is important for investors and analysts to consider other factors in conjunction with the current ratio to gain a more comprehensive understanding of the company's liquidity and financial health.