Patrick Industries Inc (PATK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.57% | 21.70% | 19.68% | 18.58% | 18.15% |
| Operating profit margin | 7.51% | 10.16% | 8.64% | 7.02% | 6.63% |
| Pretax margin | 5.52% | 8.91% | 7.22% | 5.28% | 5.06% |
| Net profit margin | 4.12% | 6.72% | 5.53% | 3.93% | 3.84% |
From 2019 to 2023, Patrick Industries, Inc.'s profitability ratios have shown a general positive trend, indicating improvements in its operational efficiency and financial performance.
The Gross Profit Margin has been gradually increasing over the past five years, reaching 22.56% in 2023. This indicates that the company is able to generate more profit from its sales after deducting the cost of goods sold.
The Operating Profit Margin has shown some fluctuations but generally increased from 6.61% in 2019 to 7.50% in 2023. This suggests that the company has been able to control its operating expenses more effectively over the years.
The Pretax Margin and Net Profit Margin also display an upward trend over the period, indicating that the company has been able to generate more profit before and after tax from its operations. The Net Profit Margin has improved from 3.83% in 2019 to 4.12% in 2023.
Overall, the improving trend in Patrick Industries, Inc.'s profitability ratios signals that the company's financial health has been getting stronger, which may be indicative of effective management and operational strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.15% | 17.83% | 13.27% | 9.89% | 10.50% |
| Return on assets (ROA) | 5.58% | 11.80% | 8.49% | 5.54% | 6.09% |
| Return on total capital | 12.61% | 22.24% | 17.19% | 12.65% | 13.22% |
| Return on equity (ROE) | 13.67% | 34.36% | 29.30% | 17.35% | 18.00% |
1. Operating Return on Assets (Operating ROA)
- The operating ROA of Patrick Industries, Inc. has shown a decreasing trend from 17.83% in 2022 to 10.15% in 2023.
- This ratio indicates that for every dollar of assets, the company generated operating income at a rate of 10.15% in 2023.
2. Return on Assets (ROA)
- The ROA also demonstrates a declining trend over the past five years, with a value of 5.58% in 2023.
- This ratio measures the company's ability to generate profit from its total assets, indicating that Patrick Industries, Inc. earned 5.58 cents for each dollar of assets in 2023.
3. Return on Total Capital
- The return on total capital ratio has also followed a downward trajectory from 22.16% in 2022 to 12.56% in 2023.
- This metric reflects the company's ability to generate profit from both debt and equity capital invested.
4. Return on Equity (ROE)
- The ROE of Patrick Industries, Inc. has decreased from 34.36% in 2022 to 13.67% in 2023.
- ROE shows the company's ability to generate profit from shareholders' equity, revealing that for every dollar of equity, the company earned 13.67 cents in 2023.
Overall, the profitability ratios of Patrick Industries, Inc. indicate a general downward trend, demonstrating a decreasing ability to generate profits relative to its assets, capital, and equity over the past five years. This trend suggests that the company may be experiencing challenges in maximizing returns on its resources.