Patrick Industries Inc (PATK)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 258,040 | 260,200 | 496,170 | 351,712 | 173,373 |
| Total assets | US$ in thousands | 3,020,950 | 2,562,450 | 2,782,470 | 2,650,730 | 1,753,440 |
| Operating ROA | 8.54% | 10.15% | 17.83% | 13.27% | 9.89% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $258,040K ÷ $3,020,950K
= 8.54%
The operating return on assets (Operating ROA) of Patrick Industries Inc has shown fluctuations over the period from December 31, 2020, to December 31, 2024. Initially standing at 9.89% in 2020, the Operating ROA demonstrated an upward trend, reaching its peak at 17.83% on December 31, 2022. However, it experienced a decline in the subsequent years, dropping to 10.15% in 2023 and further decreasing to 8.54% by the end of 2024.
This indicates that Patrick Industries Inc's operating performance in generating profits from its assets improved significantly between 2020 and 2022. However, the decline in Operating ROA in the latter years suggests a potential decrease in the efficiency of utilizing its assets to generate operating income. It is important for the company to assess the reasons behind this decline and implement strategies to enhance its operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024