Patrick Industries Inc (PATK)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,045,340 955,169 767,557 559,441 497,481
Debt-to-capital ratio 0.49 0.57 0.62 0.59 0.57

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,018,360K ÷ ($1,018,360K + $1,045,340K)
= 0.49

The debt-to-capital ratio of Patrick Industries, Inc. has shown a fluctuating trend over the past five years. The ratio decreased from 0.58 in 2019 to 0.50 in 2023, indicating a reduction in the company's reliance on debt relative to its total capital structure. However, it is important to note that the ratio increased to 0.63 in 2021 before decreasing again.

Overall, Patrick Industries, Inc. appears to be managing its debt levels relative to its total capital effectively, as the ratio has generally remained below 1. A lower debt-to-capital ratio suggests that the company has a stronger equity position and may be less dependent on external financing. This can potentially signify better financial stability and lower financial risk for the company, as it indicates a prudent balance between debt and equity in its capital structure. Further analysis of the company's long-term debt levels and debt repayment capabilities would provide more insights into its overall financial health and risk profile.