Patrick Industries Inc (PATK)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	33,561	11,409	22,847	122,849	44,767
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	353,615	308,496	367,240	432,777	227,389
Quick ratio		0.09	0.04	0.06	0.28	0.20

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($33,561K + $—K + $—K) ÷ $353,615K
= 0.09

The quick ratio of Patrick Industries Inc has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.20, indicating that the company had $0.20 in liquid assets available to cover each dollar of current liabilities.

There was an improvement in the quick ratio by the end of December 31, 2021, reaching 0.28. This suggests a slight increase in the company's ability to meet its short-term obligations using its quick assets.

However, there was a significant decline in the quick ratio by December 31, 2022, dropping to 0.06. This may indicate potential liquidity challenges for the company, as it had only $0.06 in quick assets for every dollar of current liabilities.

The quick ratio further decreased to 0.04 by December 31, 2023, raising concerns about the company's short-term liquidity position. It implies that the company may have difficulties meeting its current obligations with its available quick assets.

By the end of December 31, 2024, there was a slight improvement in the quick ratio, which rose to 0.09. Although it remains relatively low, indicating that the company still has limited quick assets compared to its current liabilities.

Overall, the trend in Patrick Industries Inc's quick ratio reflects fluctuations in its short-term liquidity position over the years, with some periods showing improvements while others indicate potential challenges in meeting immediate financial obligations using its quick assets. This ratio is an important metric for assessing a company's ability to manage its short-term financial commitments.