Patrick Industries Inc (PATK)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	142,897	152,260	171,529	245,696	328,196	349,036	347,614	290,075	224,915	201,719	181,658	123,387	97,061	79,221	63,202	89,904	89,566	96,552	103,169	110,613
Total assets	US$ in thousands	2,562,450	2,655,940	2,707,030	2,816,830	2,782,470	2,896,650	3,024,830	2,971,380	2,650,730	2,358,460	2,224,710	1,834,880	1,753,440	1,574,940	1,492,800	1,522,160	1,470,990	1,451,130	1,330,910	1,355,180
ROA		5.58%	5.73%	6.34%	8.72%	11.80%	12.05%	11.49%	9.76%	8.49%	8.55%	8.17%	6.72%	5.54%	5.03%	4.23%	5.91%	6.09%	6.65%	7.75%	8.16%

December 31, 2023 calculation

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

The Return on Assets (ROA) for Patrick Industries, Inc. has shown a declining trend over the past eight quarters, indicating a reduction in the company's ability to generate profits from its assets.

In Q4 2022, the ROA was at its peak, reaching 11.80%. However, since then, the ROA has gradually decreased to 5.58% in Q4 2023. This decline suggests that the company's profitability relative to its total assets has diminished over time.

The decreasing trend in ROA may indicate inefficiencies in asset utilization or reduced profitability relative to the size of the company's asset base. It could also signify increased operating expenses or lower revenue generation from the assets employed by the company.

Overall, the declining ROA for Patrick Industries, Inc. highlights a potential area of concern in terms of how effectively the company is generating profits from its assets. Further analysis of the company's financial performance and operational strategies may be necessary to address this downward trend and improve ROA in the future.