Patrick Industries Inc (PATK)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	191,258	201,118	224,381	326,291	435,410	461,550	461,928	383,389	293,822	266,803	238,288	158,887	130,372	104,977	84,462	119,770	117,826	122,680	131,244	141,442
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
Pretax margin		5.52%	5.53%	5.78%	7.35%	8.91%	9.08%	9.18%	8.38%	7.21%	7.21%	7.13%	5.79%	5.25%	4.64%	3.97%	5.17%	5.05%	5.29%	5.64%	6.10%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $191,258K ÷ $3,467,453K
= 5.52%

Patrick Industries, Inc.'s pretax margin has shown a declining trend over the past year, with a gradual decrease from 8.92% in Q4 2022 to 5.51% in Q4 2023. This indicates that the company's profitability before accounting for taxes has been decreasing. The highest pretax margin was seen in Q2 2022 at 9.19%, followed by a notable drop in Q3 2022 to 9.09%. However, there was a sharp decline in Q1 2023 to 7.35%, before further decreasing to the lowest level in Q4 2023. This downward trend may raise concerns about the company's ability to maintain profitability in the future and may require further investigation into the factors influencing this decline.