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.