Patrick Industries Inc (PATK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 260,200 | 496,170 | 351,712 | 173,373 | 154,442 |
| Interest expense | US$ in thousands | 1,072 | 1,851 | 7,987 | 15,960 | 7,021 |
| Interest coverage | 242.72 | 268.06 | 44.04 | 10.86 | 22.00 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $260,200K ÷ $1,072K
= 242.72
The interest coverage ratio of Patrick Industries, Inc. has shown some fluctuations over the past five years. In 2023, the interest coverage ratio was 3.77, indicating that the company earned 3.77 times more income than the interest expenses it incurred during the year.
Compared to 2022, where the interest coverage ratio was 8.17, the ratio has decreased significantly. This could suggest that the company's ability to cover its interest expenses with operating income weakened in 2023. However, it's important to note that an interest coverage ratio above 1 indicates that the company is generating enough income to cover its interest obligations.
Looking at the trend over the past five years, the interest coverage ratio has generally been above 1, indicating a healthy financial position in terms of meeting interest payments. However, the fluctuations in the ratio may suggest varying levels of financial leverage and profitability over the years. Further analysis is needed to understand the factors driving these changes and assess the company's overall financial health.
Peer comparison
Dec 31, 2023