Ufp Industries Inc (UFPI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,425,570 | 5,799,450 | 7,837,280 | 7,229,170 | 4,353,700 |
| Inventory | US$ in thousands | 720,824 | 727,788 | 973,227 | 963,320 | 567,294 |
| Inventory turnover | 7.53 | 7.97 | 8.05 | 7.50 | 7.67 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,425,570K ÷ $720,824K
= 7.53
The inventory turnover ratio for Ufp Industries Inc has shown some variability over the past five years. It decreased from 7.67 in December 2020 to 7.50 in December 2021, indicating a slight decline in the efficiency of inventory management during that period. However, there was an improvement in the inventory turnover ratio in December 2022, reaching 8.05, suggesting a more effective utilization of inventory.
Subsequently, the inventory turnover ratio remained relatively stable around 7.97 in December 2023 and 7.53 in December 2024. Overall, the company has been able to maintain a healthy turnover of inventory, on average about 7-8 times annually, which indicates that Ufp Industries Inc is effectively managing its inventory levels to meet demand and minimize carrying costs.