Patrick Industries Inc (PATK)

Quick 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	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	—	—	—
Receivables	US$ in thousands	163,838	240,850	206,777	—	172,890	285,734	355,352	354,489	172,392	292,932	264,296	211,974	132,505	175,533	143,614	154,571	87,536	129,837	114,722	137,318
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
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($11,409K + $—K + $163,838K) ÷ $308,496K
= 0.57

The quick ratio of Patrick Industries, Inc. has shown some variability over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its current liabilities without selling inventory or receivables.

Looking at the trend, the quick ratio has fluctuated between 0.66 and 1.02. In the most recent quarter, Q4 2023, the quick ratio was 0.73, which indicates a slight decrease compared to the previous quarter. This may suggest that the company's ability to cover its short-term obligations with its quick assets has weakened slightly.

On a more positive note, in Q2 2022, the quick ratio was at its highest level of 1.02, indicating a strong ability to meet short-term liabilities without relying heavily on inventory or receivables. Overall, the quick ratio trend suggests that Patrick Industries, Inc. has experienced some fluctuations in its liquidity position over the past two years, and it would be important for the company to closely monitor and manage its liquidity going forward.