Ufp Industries Inc (UFPI)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,799,450 | 7,837,280 | 7,229,170 | 4,353,700 | 3,730,490 |
| Inventory | US$ in thousands | 727,788 | 973,227 | 963,320 | 567,294 | 486,874 |
| Inventory turnover | 7.97 | 8.05 | 7.50 | 7.67 | 7.66 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,799,450K ÷ $727,788K
= 7.97
The inventory turnover of Ufp Industries Inc has been relatively stable over the past five years, ranging between 7.50 and 8.05. This indicates that the company is efficient in managing its inventory levels and converting its inventory into sales. A higher inventory turnover ratio generally signifies that the company is selling its products quickly and efficiently. However, it's important to note that a very high inventory turnover ratio may indicate inventory shortages or stockouts.
Overall, Ufp Industries Inc's inventory turnover ratio reflects sound inventory management practices, ensuring that the company is effectively managing its inventory levels to meet customer demand while minimizing holding costs. This consistency in inventory turnover suggests that the company has a good grasp of its supply chain operations and is effectively monitoring and controlling its inventory levels.