Patrick Industries Inc (PATK)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 3,020,950 3,122,950 3,003,870 3,032,880 2,674,230 2,655,940 2,707,030 2,816,830 2,782,470 2,896,650 3,024,830 2,971,380 2,650,730 2,358,460 2,224,710 1,834,880 1,753,440 1,574,940 1,492,800 1,522,160
Total stockholders’ equity US$ in thousands 1,128,370 1,129,480 1,098,500 1,058,540 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
Financial leverage ratio 2.68 2.76 2.73 2.87 2.56 2.58 2.71 2.90 2.91 3.06 3.37 3.71 3.45 3.41 3.46 3.08 3.13 3.00 3.03 3.07

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,020,950K ÷ $1,128,370K
= 2.68

The financial leverage ratio of Patrick Industries Inc has shown fluctuations over the period from March 31, 2020 to December 31, 2024. The ratio decreased from 3.07 in March 31, 2020 to 2.56 in December 31, 2023, indicating a decreasing trend in the company's leverage. However, there was a slight increase in the ratio to 2.68 by December 31, 2024.

The company's leverage ratio peaked at 3.71 on March 31, 2022, suggesting a higher level of financial leverage at that point. Subsequently, there was a decline in the ratio before a slight recovery by the end of the period.

Overall, the downward trend in the financial leverage ratio indicates that Patrick Industries Inc has been reducing its reliance on debt to finance its operations and investments. This could potentially signify improved financial stability and lower risk for the company in the long run.