Ufp Industries Inc (UFPI)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,799,450 | 6,127,470 | 6,536,910 | 7,290,480 | 7,837,280 | 7,926,290 | 7,819,840 | 7,701,670 | 7,229,170 | 6,790,580 | 6,269,500 | 5,027,320 | 4,353,696 | 3,987,831 | 3,718,437 | 3,734,457 | 3,730,489 | 3,740,242 | 3,818,516 | 3,894,176 |
| Inventory | US$ in thousands | 727,788 | 744,747 | 821,187 | 960,338 | 973,227 | 1,006,880 | 1,106,300 | 1,230,350 | 963,320 | 900,665 | 1,026,490 | 823,414 | 567,294 | 528,734 | 459,424 | 510,681 | 486,874 | 479,356 | 528,680 | 580,163 |
| Inventory turnover | 7.97 | 8.23 | 7.96 | 7.59 | 8.05 | 7.87 | 7.07 | 6.26 | 7.50 | 7.54 | 6.11 | 6.11 | 7.67 | 7.54 | 8.09 | 7.31 | 7.66 | 7.80 | 7.22 | 6.71 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,799,450K ÷ $727,788K
= 7.97
Ufp Industries Inc's inventory turnover ratio has shown fluctuations over the periods provided in the table. The average inventory turnover for the latest 12 periods was approximately 7.48. This ratio indicates that, on average, the company sells and replaces its inventory approximately 7.48 times per year.
The increasing trend in inventory turnover from the beginning of 2020 to the end of 2022 suggests that Ufp Industries Inc was managing its inventory more efficiently during that period. However, there was a slight decrease in inventory turnover in 2023, which could imply potential inefficiencies in managing inventory levels, sales, or production.
Overall, the inventory turnover ratio provides insights into how effectively Ufp Industries Inc is managing its inventory levels and converting them into sales. Further analysis and comparison with industry averages and competitors can provide a clearer picture of the company's inventory management efficiency.