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.