Ufp Industries Inc (UFPI)
Payables 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 |
| Payables | US$ in thousands | 203,055 | 253,065 | 264,408 | 277,989 | 206,941 | 323,404 | 386,833 | 425,956 | 319,125 | 292,933 | 359,484 | 299,398 | 211,518 | 231,111 | 199,338 | 162,039 | 142,479 | 180,767 | 189,649 | 170,667 |
| Payables turnover | 28.56 | 24.21 | 24.72 | 26.23 | 37.87 | 24.51 | 20.22 | 18.08 | 22.65 | 23.18 | 17.44 | 16.79 | 20.58 | 17.26 | 18.65 | 23.05 | 26.18 | 20.69 | 20.13 | 22.82 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,799,450K ÷ $203,055K
= 28.56
The payables turnover ratio for Ufp Industries Inc has shown fluctuations over the past few quarters. The ratio was relatively high at 28.56 in December 2023, indicating that the company generated 28.56 times the cost of goods sold in payables during that period. This could suggest efficient management of trade payables.
However, the ratio decreased to 24.21 in September 2023 and further fluctuated between 24.72 and 26.23 in the following quarters. The ratio was significantly lower in March 2021 at 16.79, signifying a potential lengthening of the payable period or lower cost of goods sold during that period.
Overall, while the payables turnover ratio has varied, it is essential to consider the underlying reasons for these fluctuations. A high turnover ratio may indicate sound liquidity management, while a low ratio could imply issues such as strained supplier relationships or delayed payments. It is advisable to analyze this ratio alongside other financial metrics to gain a comprehensive understanding of Ufp Industries Inc's financial health.