Patrick Industries Inc (PATK)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	260,200	270,511	292,197	390,649	496,170	523,235	523,747	444,986	351,712	319,179	285,735	202,575	173,373	147,191	124,772	157,895	154,442	157,358	164,657	172,483
Revenue (ttm)	US$ in thousands	3,467,453	3,638,773	3,884,790	4,439,795	4,886,925	5,082,490	5,030,580	4,574,840	4,076,324	3,701,457	3,341,984	2,746,079	2,484,874	2,261,721	2,127,200	2,316,373	2,335,411	2,317,162	2,326,115	2,317,776
Operating profit margin		7.50%	7.43%	7.52%	8.80%	10.15%	10.29%	10.41%	9.73%	8.63%	8.62%	8.55%	7.38%	6.98%	6.51%	5.87%	6.82%	6.61%	6.79%	7.08%	7.44%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $260,200K ÷ $3,467,453K
= 7.50%

The operating profit margin of Patrick Industries, Inc. has shown a gradual decline over the past few quarters. In Q4 2022, the operating profit margin stood at 10.16%, which has since decreased to 7.50% in Q4 2023. This downward trend indicates a potential erosion of profitability in the company's operations.

While the operating profit margin fluctuated slightly in Q3 and Q2 2023, it remained within a narrow range of 7.43% to 7.52%. However, the significant drop to 7.50% in Q4 2023 raises concerns about the company's ability to effectively control its operating expenses and generate revenue.

Comparing the current operating profit margin to the same quarter in the previous year (Q4 2022), there has been a notable decline of over 2.6 percentage points. This suggests that Patrick Industries may be facing challenges in managing its costs and optimizing its operational efficiency.

Overall, the decreasing trend in the operating profit margin of Patrick Industries, Inc. highlights the need for the company to closely monitor its expenses, improve operational efficiency, and enhance revenue generation strategies to sustain profitability in the future.