Patrick Industries Inc (PATK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 260,200 | 496,170 | 351,712 | 173,373 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,128,370 | 1,045,340 | 955,169 | 767,557 | 559,441 |
| Return on total capital | 0.00% | 24.89% | 51.95% | 45.82% | 30.99% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,128,370K)
= 0.00%
Based on the provided data, the return on total capital of Patrick Industries Inc has shown varying trends over the years.
- In December 31, 2020, the return on total capital was 30.99%, indicating that the company generated approximately $0.31 in profits for every dollar of total capital employed.
- The return on total capital significantly increased to 45.82% by December 31, 2021, suggesting a more efficient utilization of capital to generate profits.
- By December 31, 2022, the return on total capital further improved to 51.95%, reaching its peak during the period analyzed.
- However, there was a significant decline in the return on total capital to 24.89% by December 31, 2023, indicating potential challenges in maintaining the high level of profitability.
- Lastly, the return on total capital dropped to 0.00% by December 31, 2024, suggesting a potential lack of profitability or a change in the company's capital structure.
Overall, the return on total capital of Patrick Industries Inc has shown fluctuations, with periods of improvement followed by declines. It is essential for the company to closely monitor and manage its capital utilization to sustain profitability and create long-term value for its stakeholders.
Peer comparison
Dec 31, 2024