Patrick Industries (Patrick Industries) Interest Coverage

: 3.74 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Patrick Industries's Operating Income for the three months ended in Dec. 2023 was $57 Mil. Patrick Industries's Interest Expense for the three months ended in Dec. 2023 was $-15 Mil. Patrick Industries's interest coverage for the quarter that ended in Dec. 2023 was 3.74. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Patrick Industries's Interest Coverage or its related term are showing as below:

PATK' s Interest Coverage Range Over the Past 10 Years
Min: 3.77 Med: 7.46 Max: 21.51
Current: 3.77

PATK's Interest Coverage is ranked worse than
72.38% of 315 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 8.72 vs PATK: 3.77

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Patrick Industries Interest Coverage Historical Data

The historical data trend for Patrick Industries's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Patrick Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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4.22

4.03

6.08

8.17

3.77

Patrick Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.29	3.04	4.14	4.21	3.74

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Patrick Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Patrick Industries Interest Coverage Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Patrick Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Patrick Industries's Interest Coverage falls into.

Patrick Industries Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Patrick Industries's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Patrick Industries's Interest Expense was $-69 Mil. Its Operating Income was $260 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,151 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	260.2	/	-68.942
	=	3.77

Patrick Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Patrick Industries's Interest Expense was $-15 Mil. Its Operating Income was $57 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,151 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	57.316	/	-15.319
	=	3.74

The higher the ratio, the stronger the company's Financial Strength is.

Patrick Industries (NAS:PATK) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Patrick Industries Interest Coverage Related Terms

Thank you for viewing the detailed overview of Patrick Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Patrick Industries (Patrick Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Patrick Industries Inc (NAS:PATK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

PK2:Germany

Address

107 West Franklin Street, P.O. Box 638, Elkhart, IN, USA, 46515

Website

https://www.patrickind.com

Patrick Industries Inc makes and sells building products and materials for recreational vehicles and manufactured housing. The company is organized into two segments based on product type: manufacturing and distribution. The manufacturing segment, which generates the majority of revenue, sells laminated and vinyl products that include furniture, shelving, cabinets, bath fixtures, and countertops. The distribution segment sells prefinished wall and ceiling panels, as well as electrical and plumbing products for the RV and manufactured-housing industries. One of the firm's RV customers makes up a significant portion of revenue. Nearly all of Patrick Industries' revenue comes from North America.

Executives

Andy L Nemeth	director, officer: President	C/O PATRICK INDUSTRIES, INC.,, P.O. BOX 638, ELKHART IN 46515-0638
Kip B Ellis	officer: EVP Operations & COO	107 W. FRANKLIN STREET, P.O. BOX 638, ELKHART IN 46515
Jeff Rodino	officer: EVP-Sales, Chief Sales Officer	107 W. FRANKLIN STREET, P.O.BOX 638, ELKHART IN 46515
Todd M Cleveland	director, officer: CEO	107 W. FRANKLIN ST., ELKHART IN 46515
Derrick B Mayes	director	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
Matthew S Filer	officer: Interim CFO, Treasurer & PAO	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
M Scott Welch	director	6 LONGWOOD COURT, ELKHART IN 46516
Stacey L Neu	officer: EVP & CHRO	C/O SPECTRUM BRANDS HOLDINGS, INC., 3001 DEMING WAY, MIDDLETON WI 53562
Michael A Kitson	director	107 W. FRANKLIN STREET, P.O. BOX 638, ELKHART IN 46515
Pamela R Klyn	director	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
Joel D Duthie	officer: Chief Legal Officer/Secretary	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
Blosser Courtney	officer: Chief Human Resource Officer	107 W. FRANKLIN STREET, P.O.BOX 638, ELKHART IN 46515
Jacob R Petkovich	officer: EVP Finance, CFO & Treasurer	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
James E Rose	other: Principal Accounting Officer	107 W. FRANKLIN STREET, PO BOX 638, ELKHART IN 46515
Joshua A Boone	officer: VP - Finance & CFO	107 W. FRANKLIN STREET, P.O. BOX 638, ELKHART IN 46515