Patrick Industries Inc (PATK)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,562,450 | 2,782,470 | 2,650,730 | 1,753,440 | 1,470,990 |
| Total stockholders’ equity | US$ in thousands | 1,045,340 | 955,169 | 767,557 | 559,441 | 497,481 |
| Financial leverage ratio | 2.45 | 2.91 | 3.45 | 3.13 | 2.96 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,562,450K ÷ $1,045,340K
= 2.45
The financial leverage ratio of Patrick Industries, Inc. has shown fluctuations over the past five years, indicating changes in the company's capital structure and debt levels. The ratio decreased from 2.96 in 2019 to 2.45 in 2023, implying potential improvements in the company's ability to meet its financial obligations using debt financing.
However, it is important to note that the ratio increased to 3.45 in 2021 before declining again in 2023. This fluctuation suggests that the company may have taken on higher levels of debt in 2021, which could have posed potential risks to its financial stability.
Overall, the trend in the financial leverage ratio over the past five years indicates varying degrees of leverage assumed by Patrick Industries, reflecting changes in its financing strategies and risk management approaches. Further analysis of the company's debt structure and cash flow capabilities would provide a more holistic understanding of its financial health and risk profile.
Peer comparison
Dec 31, 2023