Patrick Industries Inc (PATK)

Solvency ratios

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
Debt-to-assets ratio 0.40 0.42 0.45 0.47 0.46 0.46 0.49 0.50 0.48 0.46 0.48 0.43 0.46 0.43 0.45 0.44 0.46 0.46 0.43 0.45
Debt-to-capital ratio 0.49 0.52 0.55 0.58 0.57 0.58 0.62 0.65 0.62 0.61 0.63 0.57 0.59 0.56 0.58 0.58 0.57 0.58 0.55 0.59
Debt-to-equity ratio 0.97 1.07 1.22 1.37 1.34 1.41 1.64 1.86 1.67 1.56 1.67 1.32 1.45 1.28 1.36 1.36 1.35 1.40 1.24 1.43
Financial leverage ratio 2.45 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 2.96 3.02 2.90 3.16

The solvency ratios of Patrick Industries, Inc. indicate its ability to meet its long-term financial obligations and the extent to which the company relies on debt financing.

The trend in the debt-to-assets ratio shows a slight decline over the past eight quarters, indicating that the company has been able to reduce its level of debt relative to its total assets. This suggests a stronger financial position in terms of asset coverage of debts.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have displayed a decreasing trend over the same period. The decreasing debt ratios suggest that Patrick Industries has been reducing its reliance on debt financing compared to its total capital and equity, respectively. A lower debt-to-capital ratio indicates a lower proportion of debt in the company's capital structure, which may be favorable in terms of lowering financial risk.

The financial leverage ratio, which measures the proportion of the company's total assets that are financed by debt, has also shown a decreasing trend. A declining financial leverage ratio indicates that the company has been reducing its reliance on debt to finance its operations, which can be a positive sign of financial stability.

Overall, the solvency ratios of Patrick Industries, Inc. have been improving over the past quarters, indicating better financial health and a stronger ability to meet its long-term obligations.

Coverage ratios

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
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

Based on the data provided, Patrick Industries, Inc.'s interest coverage ratio has been fluctuating over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

In Q1 2023, the interest coverage ratio was 6.07, representing a slight decrease from the previous quarter's ratio of 4.31. Despite this decrease, the ratio is at a healthy level, indicating that the company's operating income is sufficient to cover its interest payments.

Compared to the ratios from Q4 2022 and Q3 2022, which were relatively high at 8.17 and 8.48 respectively, the recent ratios suggest a slight decline in the company's ability to cover interest expenses. However, the ratios in Q4 2023 and Q3 2023 still exceed the industry average, indicating that Patrick Industries, Inc. remains financially stable and capable of meeting its interest obligations.

It is important for investors and stakeholders to continue monitoring Patrick Industries, Inc.'s interest coverage ratio to ensure that the company can sustain its debt payments in the long run.