Patrick Industries Inc (PATK)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	782,233	1,059,940	801,194	459,017	422,871
Revenue	US$ in thousands	3,466,390	4,885,580	4,070,100	2,470,640	2,330,060
Gross profit margin		22.57%	21.70%	19.68%	18.58%	18.15%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $782,233K ÷ $3,466,390K
= 22.57%

Looking at the trend in Patrick Industries, Inc.'s gross profit margin over the past five years, we can see a general improvement year over year. The gross profit margin has increased steadily from 18.09% in 2019 to 22.56% in 2023. This indicates that the company has been able to effectively control its cost of goods sold and/or increase the selling price of its products, resulting in a higher percentage of revenue retained as gross profit.

The consistent improvement in the gross profit margin reflects positively on the company's operational efficiency and pricing strategy, suggesting that Patrick Industries, Inc. has been able to enhance its profitability over the years. This trend may be attributed to various factors such as cost-cutting measures, economies of scale, efficient inventory management, or product mix optimization.

Overall, the increasing trend in the gross profit margin of Patrick Industries, Inc. is a positive indicator of the company's financial performance and ability to generate profits from its core business operations.