Patrick Industries Inc (PATK)

Debt-to-equity 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-equity ratio		0.97	1.34	1.67	1.45	1.35

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,018,360K ÷ $1,045,340K
= 0.97

The debt-to-equity ratio for Patrick Industries, Inc. has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 0.98 from 1.34 in 2022. This suggests that the company relied less on debt financing relative to equity financing in 2023. The reduction in the ratio could indicate improved financial stability and a stronger position to meet its obligations without being overly leveraged.

Comparing the debt-to-equity ratio in 2023 to the ratios in 2021, 2020, and 2019, it is evident that the company has been actively managing its capital structure. The ratio peaked at 1.68 in 2021 and has since shown a decreasing trend. This indicates a move towards a more balanced mix of debt and equity in the company's capital structure over the years.

Overall, the decreasing trend in the debt-to-equity ratio for Patrick Industries, Inc. reflects a positive shift towards a more conservative financial structure, potentially reducing financial risk and enhancing the company's long-term sustainability.