Patrick Industries Inc (PATK)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	218,448	275,764	272,422	263,308	260,200	270,511	292,197	390,649	496,170	523,235	523,747	444,986	351,712	319,179	285,735	202,575	173,373	147,191	124,772	157,895
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		19.36%	24.42%	24.80%	24.87%	24.89%	26.23%	29.30%	40.28%	51.95%	55.27%	58.35%	55.63%	45.82%	46.12%	44.42%	34.03%	30.99%	27.99%	25.29%	31.87%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $218,448K ÷ ($—K + $1,128,370K)
= 19.36%

The return on total capital for Patrick Industries Inc has shown fluctuation over the given period. Starting at 31.87% in March 2020, it gradually increased to a peak of 58.35% in June 2022. However, there was a notable decline in the return on total capital in the subsequent periods, dropping to 19.36% by December 2024.

It is crucial to note that an increasing trend in the return on total capital indicates that the company is effectively utilizing its capital to generate profits. Conversely, a declining trend may raise concerns about the company's capital efficiency and overall profitability. Further analysis and comparison with industry benchmarks would provide more insight into the financial health and performance of Patrick Industries Inc.