Patrick Industries Inc (PATK)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	260,200	496,170	351,712	173,373	154,442
Total assets	US$ in thousands	2,562,450	2,782,470	2,650,730	1,753,440	1,470,990
Operating ROA		10.15%	17.83%	13.27%	9.89%	10.50%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $260,200K ÷ $2,562,450K
= 10.15%

The operating return on assets (operating ROA) for Patrick Industries, Inc. has fluctuated over the past five years, as indicated in the data provided. The company's operating ROA was 10.15% as of December 31, 2023, which represents a decrease from the previous year's figure of 17.83%.

The downward trend in operating ROA from 2022 to 2023 suggests that the company may be experiencing challenges in generating operating income relative to its asset base. This could indicate inefficiencies in utilizing assets to generate profits or potentially higher operating expenses impacting profitability.

It is important for Patrick Industries to closely monitor and analyze the factors contributing to the decline in operating ROA to address any underlying issues that may be affecting the company's operational performance and overall profitability. A thorough review of cost structures, revenue streams, asset utilization, and operational efficiency may be necessary to improve the operating ROA and ensure sustainable long-term financial health.