Ufp Industries Inc (UFPI)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,425,570 | 5,431,290 | 5,543,560 | 5,648,190 | 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 | 4,350,804 | 3,984,940 | 3,715,546 | 3,731,566 |
| Inventory | US$ in thousands | 720,824 | 645,429 | 684,813 | 745,295 | 727,788 | 747,474 | 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 |
| Inventory turnover | 7.53 | 8.42 | 8.09 | 7.58 | 7.97 | 8.20 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $5,425,570K ÷ $720,824K
= 7.53
The inventory turnover ratio of Ufp Industries Inc has shown some fluctuations over the analyzed period. The ratio indicates how efficiently the company is managing its inventory by measuring the number of times inventory is sold and replenished over a certain period.
From March 31, 2020, to June 30, 2022, the inventory turnover ratio ranged between 6.11 to 8.09, showing some variability but generally staying within a relatively stable range. It peaked at 8.09 on June 30, 2020, and June 30, 2024, indicating that during those periods, Ufp Industries Inc was able to sell and replenish its inventory effectively.
However, there were some drops in the inventory turnover ratio below 7 during the periods of March 31, 2021, March 31, 2022, and December 31, 2024, which might suggest a potential inefficiency in managing inventory during those specific quarters.
Overall, the company's inventory turnover ratio averaged around 7.50 over the analyzed period, indicating that Ufp Industries Inc generally maintains a healthy balance between holding inventory and selling it. Monitoring this ratio over time can provide insights into the company's operational efficiency and inventory management strategies.