Patrick Industries Inc (PATK)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	260,200	270,511	292,197	390,649	496,170	523,235	523,747	444,986	351,712	319,179	285,735	202,575	173,373	147,191	124,772	157,895	154,442	157,358	164,657	172,483
Interest expense (ttm)	US$ in thousands	37,242	37,445	37,671	19,886	1,851	3,858	5,268	6,667	7,987	16,186	16,098	16,006	15,960	7,200	14,006	13,935	13,883	13,375	6,402	6,310
Interest coverage		6.99	7.22	7.76	19.64	268.06	135.62	99.42	66.74	44.04	19.72	17.75	12.66	10.86	20.44	8.91	11.33	11.12	11.77	25.72	27.33

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $260,200K ÷ $37,242K
= 6.99

Interest coverage measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a company is more capable of covering its interest expenses.

Looking at the data provided for Patrick Industries, Inc., we observe fluctuations in the interest coverage ratio over the past eight quarters. The ratio ranged from a low of 3.77 in Q4 2023 to a high of 8.48 in Q3 2022.

The trend indicates some variability in the company's ability to cover its interest expenses, with periods of stronger and weaker coverage. In the most recent quarters, the interest coverage has been declining, showing a potential decrease in the company's ability to meet its interest obligations compared to previous periods.

Further analysis may be necessary to understand the reasons behind these fluctuations and determine if the company's financial health is at risk due to changes in its interest coverage ratio.