Ufp Industries Inc (UFPI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,218,380 | 9,626,740 | 8,636,130 | 5,154,000 | 4,416,010 |
| Property, plant and equipment | US$ in thousands | 776,577 | 688,982 | 589,020 | 417,162 | 387,174 |
| Fixed asset turnover | 9.30 | 13.97 | 14.66 | 12.35 | 11.41 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,218,380K ÷ $776,577K
= 9.30
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its investment in property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is more efficiently utilizing its fixed assets to generate revenue.
For Ufp Industries Inc, the fixed asset turnover has fluctuated over the past five years, ranging from 9.30 to 14.66. In general, the company has shown a strong ability to generate revenue from its fixed assets, with the ratio consistently above 10x.
The significant decrease in fixed asset turnover from 2019 to 2020 (from 11.41 to 12.35) followed by an increase in 2021 and 2022 (14.66 and 13.97 respectively) suggests some changes in the company's operations or asset base during those periods. The recent decrease to 9.30 in 2023 may indicate a decline in revenue generation relative to fixed assets for that year.
Overall, Ufp Industries Inc has demonstrated efficient use of its fixed assets to drive revenue, although it is essential for the company to monitor any fluctuations in this ratio to ensure continued operational efficiency and profitability.