Patrick Industries Inc (PATK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.50% | 22.56% | 21.71% | 19.65% | 18.46% |
| Operating profit margin | 6.94% | 7.50% | 10.16% | 8.62% | 6.97% |
| Pretax margin | 4.81% | 5.51% | 8.92% | 7.20% | 5.24% |
| Net profit margin | 3.72% | 4.12% | 6.72% | 5.52% | 3.90% |
Based on the provided data for Patrick Industries Inc, the company's profitability ratios have shown some fluctuations over the past five years:
1. Gross Profit Margin:
- The gross profit margin has been increasing steadily from 18.46% in 2020 to 22.50% in 2024. This indicates that the company is effectively managing its production costs and generating higher profits from its sales.
2. Operating Profit Margin:
- The operating profit margin has shown some volatility, with a peak in 2022 at 10.16%, followed by a decline to 6.94% in 2024. This indicates that the company's ability to control its operating expenses fluctuated during this period.
3. Pretax Margin:
- The pretax margin increased from 5.24% in 2020 to 8.92% in 2022, before decreasing to 4.81% in 2024. This suggests that while the company's profitability before tax improved in 2022, it faced challenges in maintaining that level of profitability in the following years.
4. Net Profit Margin:
- The net profit margin followed a similar trend to the pretax margin, increasing from 3.90% in 2020 to 6.72% in 2022, but then dropping to 3.72% in 2024. This indicates that the company's bottom-line profitability improved in 2022 but faced pressure in the subsequent years.
Overall, while Patrick Industries Inc has shown improvements in its gross profit margin over the years, the fluctuations in its operating, pretax, and net profit margins suggest that the company may need to focus on managing its operating expenses more effectively to sustain and enhance its profitability in the long run.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.54% | 10.15% | 17.83% | 13.27% | 9.89% |
| Return on assets (ROA) | 4.58% | 5.58% | 11.80% | 8.49% | 5.54% |
| Return on total capital | 0.00% | 24.89% | 51.95% | 45.82% | 30.99% |
| Return on equity (ROE) | 12.27% | 13.67% | 34.36% | 29.30% | 17.35% |
Based on the provided data, Patrick Industries Inc's profitability ratios show a mixed performance over the years:
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA has shown fluctuations over the years, with a notable increase from 2020 to 2022, reaching its peak at 17.83% in 2022. However, there was a decline in 2023 and 2024.
- Overall, the company has effectively generated operating income from its assets, with a varying degree of efficiency.
2. Return on Assets (ROA):
- The ROA of Patrick Industries Inc also experienced fluctuations during the period, peaking at 11.80% in 2022. However, there was a significant decrease in 2023 and 2024 compared to the previous years.
- This ratio indicates the company's ability to generate profit from its total assets, showing some inconsistency in performance.
3. Return on Total Capital:
- The Return on Total Capital witnessed a significant increase from 2020 to 2022, reaching a high of 51.95% in 2022. However, there was a sharp decline in 2024, dropping to 0.00%.
- The decreasing trend in this ratio from 2022 to 2024 indicates a potential inefficiency in utilizing the company's total capital to generate returns.
4. Return on Equity (ROE):
- The ROE of the company displayed a similar trend to the other ratios, with a notable increase from 2020 to 2022, peaking at 34.36% in 2022. However, there was a decline in 2023 and 2024.
- The ROE reflects the company's ability to generate returns for its shareholders, showing some inconsistency in performance over the years.
In conclusion, while Patrick Industries Inc has shown moments of strong profitability ratios, there are signs of inconsistency and decline in performance in recent years. Further analysis would be necessary to identify the factors influencing these fluctuations and to determine the company's overall financial health and sustainability.