Ufp Industries Inc (UFPI)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,218,390 | 7,607,740 | 8,102,960 | 8,959,910 | 9,626,740 | 9,729,840 | 9,500,760 | 9,300,430 | 8,636,120 | 8,013,030 | 7,405,480 | 5,946,940 | 5,154,000 | 4,758,330 | 4,435,130 | 4,432,950 | 4,416,010 | 4,406,151 | 4,455,821 | 4,510,441 |
| Property, plant and equipment | US$ in thousands | 776,577 | 738,692 | 718,014 | 700,155 | 688,982 | 644,007 | 625,164 | 600,879 | 589,020 | 552,911 | 533,187 | 488,367 | 417,162 | 405,995 | 401,576 | 397,575 | 387,174 | 385,007 | 368,572 | 356,166 |
| Fixed asset turnover | 9.30 | 10.30 | 11.29 | 12.80 | 13.97 | 15.11 | 15.20 | 15.48 | 14.66 | 14.49 | 13.89 | 12.18 | 12.35 | 11.72 | 11.04 | 11.15 | 11.41 | 11.44 | 12.09 | 12.66 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,218,390K ÷ $776,577K
= 9.30
The fixed asset turnover ratio for Ufp Industries Inc has fluctuated over the period in question. The ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.
Looking at the trend, we can see that the fixed asset turnover ratio has generally been increasing from 2019 to 2023. This trend suggests that the company has been able to generate more sales revenue per dollar invested in fixed assets over this period.
The ratio peaked at 15.48 in March 2022 before experiencing a slight decline in subsequent quarters. Overall, the company has maintained relatively high fixed asset turnover ratios, indicating strong efficiency in utilizing its fixed assets to drive sales.
It is important to continue monitoring the fixed asset turnover ratio to ensure that the company is effectively utilizing its fixed assets and maximizing sales revenue.