Patrick Industries Inc (PATK)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	138,401	154,660	153,344	147,817	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
Total stockholders’ equity	US$ in thousands	1,128,370	1,129,480	1,098,500	1,058,540	1,045,340	1,031,300	997,422	969,822	955,169	946,676	897,590	799,972	767,557	692,048	643,271	595,275	559,441	525,829	493,268	495,376
ROE		12.27%	13.69%	13.96%	13.96%	13.67%	14.76%	17.20%	25.33%	34.36%	36.87%	38.73%	36.26%	29.30%	29.15%	28.24%	20.73%	17.35%	15.07%	12.81%	18.15%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $138,401K ÷ $1,128,370K
= 12.27%

The return on equity (ROE) of Patrick Industries Inc has fluctuated over the past few years. The ROE increased steadily from March 2020 to June 2021, reaching a peak of 29.30% by December 2021. This indicates the company was effectively generating profit from shareholders' equity during this period.

However, the ROE started to decline from March 2022 onwards, dropping to 12.27% by December 2024. This downtrend suggests a decrease in profitability relative to the shareholders' equity invested in the company. It is essential for investors and stakeholders to monitor this trend closely, as a declining ROE may indicate inefficiencies in the company's operations or declining profitability.

Overall, the analysis of Patrick Industries Inc's ROE highlights the importance of consistently evaluating financial performance metrics to assess the company's effectiveness in generating returns for its shareholders.