Patrick Industries Inc (PATK)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	142,897	328,196	224,915	97,061	89,566
Total assets	US$ in thousands	2,562,450	2,782,470	2,650,730	1,753,440	1,470,990
ROA		5.58%	11.80%	8.49%	5.54%	6.09%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $142,897K ÷ $2,562,450K
= 5.58%

The Return on Assets (ROA) of Patrick Industries, Inc. has exhibited some fluctuations over the past five years. The ROA was 5.58% in 2023, a decrease from 11.80% in 2022 but higher than 8.49% in 2021, 5.54% in 2020, and 6.09% in 2019. This indicates that in 2023, the company generated a profit of 5.58 cents for every dollar of assets it had.

The decreasing trend from 2022 to 2023 may raise some concerns as it suggests a decline in the company's efficiency in generating profits from its assets. It is worth further investigation to understand the reasons behind this decline and whether it indicates a potential issue with asset utilization or profitability.

Overall, while the ROA of Patrick Industries, Inc. has fluctuated over the years, it is essential for investors and stakeholders to closely monitor this metric to assess the company's ability to generate profits relative to its asset base.