Patrick Industries Inc (PATK)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,018,360	1,276,150	1,278,990	810,907	670,354
Total assets	US$ in thousands	2,562,450	2,782,470	2,650,730	1,753,440	1,470,990
Debt-to-assets ratio		0.40	0.46	0.48	0.46	0.46

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,018,360K ÷ $2,562,450K
= 0.40

The debt-to-assets ratio of Patrick Industries, Inc. has shown a fluctuating trend over the past five years. As of December 31, 2023, the ratio stands at 0.40, indicating that for every $1 in assets, the company has $0.40 in total debt. This represents a significant decrease from the previous year's ratio of 0.46.

In 2023, the company has managed to decrease its reliance on debt to finance its operations, which can be seen as a positive sign for investors and creditors. However, it is important to note that the ratio was even lower in 2021 at 0.49, which may suggest that the company has been actively managing its debt levels.

Overall, the downward trend in the debt-to-assets ratio over the past two years demonstrates an improvement in the company's financial health and its ability to use its assets more effectively to generate profits and growth.