Patrick Industries Inc (PATK)

Liquidity ratios

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
Current ratio 2.38 2.42 2.72 2.87 2.48 2.54 2.58 2.37 2.25 2.11 2.32 1.97 2.32 2.10 2.46 2.32 2.76 2.61 2.01 1.97
Quick ratio 0.57 0.77 0.78 0.09 0.53 0.78 0.91 0.84 0.68 0.82 0.98 0.73 0.78 0.94 1.17 1.05 1.22 1.22 0.67 0.67
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

Looking at the liquidity ratios of Patrick Industries, Inc. over the past eight quarters, we observe the following trends:

1. Current Ratio:
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated over the quarters. There is generally a positive trend, with the current ratio increasing from 2.48 in Q4 2022 to 2.87 in Q1 2023 before decreasing slightly to 2.38 in Q4 2023. Overall, the company maintains a current ratio well above 1, indicating a strong ability to meet its short-term obligations.

2. Quick Ratio:
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. The quick ratio has shown some volatility, with fluctuations observed over the quarters. Despite the variations, the quick ratio has generally improved from 0.66 in Q4 2022 to 0.98 in Q1 2023, before declining to 0.73 in Q4 2023. The company's ability to cover its short-term liabilities with its most liquid assets indicates a reasonable level of liquidity.

3. Cash Ratio:
The cash ratio, which is the most conservative liquidity measure focusing solely on cash and cash equivalents, displays a mixed performance. The cash ratio has varied across the quarters, with no clear trend identified. The ratio has ranged from 0.15 in Q4 2022 to 0.27 in Q2 2022, with the most recent value at 0.17 in Q4 2023. While the cash ratio is lower compared to the current and quick ratios, it indicates the company holds a sufficient amount of cash to meet its immediate obligations.

In summary, Patrick Industries, Inc. maintains healthy liquidity levels as evidenced by its current, quick, and cash ratios across the quarters analyzed. The company's ability to meet its short-term obligations and cover liabilities with liquid assets suggests a strong financial position in terms of liquidity.

Additional liquidity measure

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 conversion cycle days 62.80 67.39 65.80 46.15 58.29 65.86 69.46 70.35 57.24 58.78 58.84 56.67 53.52 57.91 53.09 48.83 41.86 54.47 48.66 53.79

The cash conversion cycle for Patrick Industries, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was at 68.45 days, which was lower compared to the previous quarter's 71.73 days. This indicates that the company was able to manage its cash more efficiently in converting its inventory into cash during this period.

Looking at the trend over the past two years, there have been fluctuations in the cash conversion cycle, with peaks seen in Q1 2022 and Q2 2022 at 74.31 days and 73.61 days, respectively. However, the cycle generally fluctuated within a relatively narrow range during this period.

Overall, the company's cash conversion cycle seems to have improved in Q4 2023 compared to the previous quarter, which could indicate better management of inventory, accounts receivable, and accounts payable. It will be important to continue monitoring this metric to ensure that efficiencies are maintained and improved over time.