Patrick Industries Inc (PATK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 260,200 | 496,170 | 351,712 | 173,373 | 154,442 |
| Long-term debt | US$ in thousands | 1,018,360 | 1,276,150 | 1,278,990 | 810,907 | 670,354 |
| Total stockholders’ equity | US$ in thousands | 1,045,340 | 955,169 | 767,557 | 559,441 | 497,481 |
| Return on total capital | 12.61% | 22.24% | 17.19% | 12.65% | 13.22% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $260,200K ÷ ($1,018,360K + $1,045,340K)
= 12.61%
Patrick Industries, Inc.'s return on total capital has shown fluctuations over the past five years. In 2023, the return decreased to 12.56% from 22.16% in 2022, indicating a decline in the company's efficiency in generating returns from its total capital. However, the return in 2023 was still higher than the levels seen in 2020 and 2019, suggesting some improvement in capital utilization compared to those years. Overall, while there has been variability in the return on total capital for Patrick Industries, Inc., it is essential for the company to focus on consistently optimizing its capital efficiency to enhance overall financial performance.
Peer comparison
Dec 31, 2023