Patrick Industries Inc (PATK)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.49	0.52	0.55	0.58	0.57	0.58	0.62	0.65	0.62	0.61	0.63	0.57	0.59	0.56	0.58	0.58	0.57	0.58	0.55	0.59

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 gradual decrease over the last few quarters, indicating a positive trend in the company's capital structure management. The ratio decreased from 0.65 in Q1 2022 to 0.50 in Q4 2023.

A lower debt-to-capital ratio signifies that the company relies less on debt financing relative to its total capital structure, which can be seen as a lower financial risk. The decreasing trend suggests that Patrick Industries has been actively reducing its debt levels or increasing its equity capital, both of which can enhance its financial stability and flexibility.

Overall, the improving debt-to-capital ratio of Patrick Industries, Inc. is a positive indicator of its financial health and prudent management of its capital structure. This trend may reflect positively on creditors and investors, as it demonstrates the company's ability to manage its debt obligations effectively.