Patrick Industries Inc (PATK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.68 | 2.45 | 2.91 | 3.45 | 3.13 |
Patrick Industries Inc has consistently shown a strong solvency position as evidenced by their debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at 0.00 for the years 2020 to 2024. This indicates that the company has no debt relative to its total assets, capital, or equity during this period.
Furthermore, the financial leverage ratio, which measures the extent to which the company relies on debt financing, has shown a decreasing trend from 3.13 in 2020 to 2.68 in 2024. This decreasing trend indicates that the company has been reducing its reliance on debt over the years, which is generally viewed positively as it lowers the company's financial risk and enhances its financial stability.
Overall, based on the solvency ratios analyzed, Patrick Industries Inc appears to have a very strong financial position with minimal debt and a decreasing reliance on debt financing, which bodes well for the company's long-term financial health and stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | 3.77 | 8.17 | 6.08 | 4.03 |
The interest coverage ratio for Patrick Industries Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the company's interest coverage ratio stood at 4.03, indicating that the firm generated operating income 4.03 times greater than its interest expenses.
The ratio improved to 6.08 by December 31, 2021, suggesting that the company's ability to cover interest payments strengthened. Subsequently, by December 31, 2022, the interest coverage ratio further increased to 8.17, reflecting a healthier financial position for the company with more than sufficient earnings to cover interest costs.
However, the ratio dropped to 3.77 as of December 31, 2023, signaling a slight decrease in the firm's ability to cover interest payments with operating income. Notably, by December 31, 2024, the interest coverage ratio was reported as 0.00, which could be due to operating losses or a very low operating income relative to interest expenses.
Overall, the trend in the interest coverage ratio for Patrick Industries Inc demonstrates varying levels of financial stability and risk associated with the company's ability to meet its interest obligations with operating earnings.