Ufp Industries Inc (UFPI)
Payables 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 |
| Payables | US$ in thousands | 203,055 | 206,941 | 319,125 | 211,518 | 142,479 |
| Payables turnover | 28.56 | 37.87 | 22.65 | 20.58 | 26.18 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,799,450K ÷ $203,055K
= 28.56
The payables turnover ratio for Ufp Industries Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times a company pays off its average accounts payable balance during a period.
In 2023, the payables turnover ratio was 28.56, showing a decrease from the previous year's ratio of 37.87. This decrease may suggest that the company took longer to pay off its accounts payable compared to the previous year.
Compared to the ratios in 2021 and 2020, which were 22.65 and 20.58 respectively, the 2023 ratio of 28.56 indicates an improvement in managing payables. However, the ratio is lower than the 2019 ratio of 26.18, indicating a potential decrease in efficiency in managing payables compared to four years ago.
Overall, further evaluation would be needed to understand the factors influencing the changes in Ufp Industries Inc's payables turnover ratio and its potential impact on the company's financial management and operations.