Patrick Industries Inc (PATK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data for Patrick Industries Inc, the solvency ratios indicate a consistently strong financial position in terms of debt management:
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Patrick Industries Inc has maintained a debt-to-assets ratio of 0.00 across all periods, indicating that the company has not relied on debt to finance its assets and has a strong ability to meet its obligations using its own resources.
2. Debt-to-capital ratio: This ratio compares a company's total debt to its total capital (debt + equity). Patrick Industries Inc has a debt-to-capital ratio of 0.00 consistently, suggesting that the company's capital structure is not heavily reliant on debt, which implies good financial health and lower financial risk.
3. Debt-to-equity ratio: This ratio evaluates the relationship between a company's debt and equity. With a debt-to-equity ratio of 0.00, Patrick Industries Inc shows that it has not taken on significant debt relative to its equity, reflecting a conservative financial stance and solid financial footing.
4. Financial leverage ratio: This ratio assesses the company's financial risk by measuring the proportion of total assets that are financed by debt. Patrick Industries Inc's financial leverage ratio shows a decreasing trend over the periods, starting at 3.07 and declining to 2.68 by December 31, 2024. This suggests that the company has been effectively managing its debt levels and reducing its reliance on borrowed funds, which indicates improved solvency and lower financial risk.
Overall, the consistent low debt ratios and decreasing financial leverage ratio of Patrick Industries Inc demonstrate a sound financial position and efficient debt management practices, which bodes well for its long-term stability and ability to weather economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.75 | 3.64 | 3.75 | 3.73 | 3.77 | 3.90 | 4.31 | 6.07 | 8.17 | 8.48 | 8.47 | 7.22 | 6.08 | 6.09 | 6.02 | 4.64 | 4.03 | 3.49 | 3.10 | 4.14 |
The interest coverage ratio of Patrick Industries Inc has shown fluctuations over the past few years. As of December 31, 2024, the interest coverage ratio stood at 2.75, indicating the company's ability to cover its interest expenses was 2.75 times. This may raise concerns about the company's ability to meet its interest obligations comfortably.
It is important to note that the interest coverage ratio has been declining since June 30, 2022, when it was at a high of 8.47. The decreasing trend suggests that the company may be facing challenges in generating enough earnings to cover its interest payments.
Overall, a declining interest coverage ratio over time could indicate potential financial distress for Patrick Industries Inc if the trend continues. It is crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to meet its debt obligations.