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.
Peer comparison
Dec 31, 2023