Patrick Industries Inc (PATK)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	154,442	157,358	164,657	172,483
Long-term debt	US$ in thousands	1,018,360	1,104,620	1,215,880	1,332,160	1,276,150	1,333,460	1,474,740	1,489,810	1,278,990	1,077,660	1,076,950	785,849	810,907	673,852	673,138	672,235	670,354	670,928	569,844	613,599
Total stockholders’ equity	US$ in thousands	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	497,481	479,938	458,617	429,089
Return on total capital		12.61%	12.66%	13.20%	16.97%	22.24%	22.95%	22.08%	19.43%	17.19%	18.04%	16.61%	14.67%	12.65%	12.27%	10.70%	13.52%	13.22%	13.67%	16.01%	16.54%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $260,200K ÷ ($1,018,360K + $1,045,340K)
= 12.61%

The return on total capital for Patrick Industries, Inc. has shown a declining trend over the last four quarters. From a high of 22.87% in Q3 2022, the return has continuously decreased to 12.56% in Q4 2023. This downward trend suggests potential issues with the company's efficiency in generating returns from its total capital investments. It is important for stakeholders to closely monitor this trend and understand the reasons behind the declining return on total capital to make informed decisions regarding the company's financial health and performance.