Patrick Industries Inc (PATK)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 2.33 2.41 2.29 2.38 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
Quick ratio 0.09 0.14 0.12 0.05 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
Cash ratio 0.09 0.14 0.12 0.05 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

Patrick Industries Inc has shown consistent improvement in its current ratio over the past few years, indicating a strong ability to cover its short-term liabilities with its current assets. The current ratio has generally remained above 2, reflecting a healthy liquidity position.

On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, has fluctuated more significantly. While the quick ratio was quite low in the past, it has shown some improvement recently. However, the quick ratio remains relatively low compared to the current ratio, suggesting that a significant portion of current assets is tied up in inventories.

The cash ratio, which is the most conservative measure of liquidity as it considers only cash and cash equivalents, has also shown some improvement in recent periods. However, the cash ratio remains relatively low, indicating that Patrick Industries Inc may not have a substantial amount of cash readily available to cover its short-term liabilities.

Overall, considering the current ratio, quick ratio, and cash ratio together, Patrick Industries Inc appears to have a reasonable level of liquidity to meet its short-term obligations, but there may be room for improvement, especially in terms of increasing cash reserves and reducing dependency on inventory for liquidity.

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 68.79 68.89 64.61 68.27 68.82 66.66 66.14 65.54 63.47 66.80 67.97 70.16 68.43 59.36 54.88 56.34 56.31 55.59 54.83 52.76

The cash conversion cycle for Patrick Industries Inc, a key measure of how efficiently the company manages its working capital, has fluctuated over the past few years.

From March 31, 2020, to June 30, 2020, there was a slight increase from 52.76 days to 54.83 days. The trend continued with further increases in the following quarters, reaching a peak of 70.16 days on March 31, 2022. This suggests the company took longer to convert its investments in inventory and other resources back into cash during this period.

However, starting from June 30, 2022, the cash conversion cycle began to decrease steadily, indicating improvements in the efficiency of the company's working capital management. By December 31, 2024, the cycle had decreased to 68.79 days, although still slightly higher than the levels seen in the mid-2020s.

Overall, despite some fluctuations, Patrick Industries Inc has shown a general trend towards a more optimized cash conversion cycle in recent years, which is a positive sign for the company's cash flow management and operational efficiency. Continued monitoring of this metric will be essential to assess the company's working capital performance in the future.