Patrick Industries Inc (PATK)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 138,401 | 142,897 | 328,196 | 224,915 | 97,061 |
| Total assets | US$ in thousands | 3,020,950 | 2,562,450 | 2,782,470 | 2,650,730 | 1,753,440 |
| ROA | 4.58% | 5.58% | 11.80% | 8.49% | 5.54% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $138,401K ÷ $3,020,950K
= 4.58%
Based on the data provided, Patrick Industries Inc's return on assets (ROA) has fluctuated over the years. In 2020, the ROA was 5.54%, which increased to 8.49% in 2021, indicating improved asset utilization and efficiency. The ROA further rose to 11.80% in 2022, reflecting the company's ability to generate more profit from its assets.
However, there was a decline in ROA in the following years, with a decrease to 5.58% in 2023 and a further drop to 4.58% in 2024. These declines suggest a potential decrease in profitability relative to the assets employed by the company during these periods.
It is important for investors and stakeholders to closely monitor ROA trends as it provides insights into the company's ability to generate returns from its assets. Analysis of the reasons behind these fluctuations can help in assessing the company's operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024