Ufp Industries Inc (UFPI)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 12.47 10.51 9.93 — 14.79 10.73 8.97 8.49 11.63 10.04 7.55 7.36 10.82 8.16 8.48 9.57 11.70 9.25 9.22 10.05
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
Working capital turnover 3.73 4.00 4.36 5.16 5.83 5.96 6.12 5.93 6.66 6.37 5.32 5.28 4.80 4.67 5.53 6.06 5.98 6.24 6.21 5.76

The inventory turnover ratio for Ufp Industries Inc has shown slight fluctuations over the periods indicated, ranging from 6.11 to 8.23. This ratio indicates how many times the company's inventory is sold and replaced within a specific period, with higher values suggesting more efficient management of inventory levels.

The receivables turnover ratio has also varied, ranging from 7.36 to 14.79, indicating the number of times receivables are collected during a period. Higher turnover ratios suggest that the company is efficient in collecting outstanding receivables, which is favorable for cash flow management.

The payables turnover ratio has shown fluctuations between 16.79 and 37.87, reflecting the number of times the company pays its suppliers within a specific period. A higher ratio implies that the company is managing its payables efficiently, potentially benefiting from favorable credit terms.

The working capital turnover ratio has also fluctuated between 4.00 and 6.66, showing how effectively the company is utilizing its working capital to generate sales. A higher ratio indicates better utilization of resources and increased efficiency in generating revenue from the available working capital.

Overall, analyzing these activity ratios provides insights into Ufp Industries Inc's operational efficiency, inventory management, receivables collection, payables management, and working capital utilization over the periods presented.

Average number of days

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
Days of inventory on hand (DOH) days 45.80 44.36 45.85 48.08 45.33 46.37 51.64 58.31 48.64 48.41 59.76 59.78 47.56 48.39 45.10 49.91 47.64 46.78 50.53 54.38
Days of sales outstanding (DSO) days 29.27 34.74 36.76 — 24.67 34.01 40.71 42.99 31.39 36.35 48.33 49.60 33.73 44.73 43.04 38.16 31.19 39.45 39.59 36.31
Number of days of payables days 12.78 15.07 14.76 13.92 9.64 14.89 18.06 20.19 16.11 15.75 20.93 21.74 17.73 21.15 19.57 15.84 13.94 17.64 18.13 16.00

The Days of Inventory on Hand (DOH) for UFP Industries Inc have fluctuated over the periods provided, ranging from 45.10 days to 59.78 days. This metric indicates the number of days a company takes to sell its inventory, with lower numbers generally being more favorable as they indicate faster turnover. The decreasing trend from 59.78 days in June 2021 to 45.80 days in December 2023 suggests an improvement in inventory management efficiency.

The Days of Sales Outstanding (DSO) have also varied, ranging from 24.67 days to 49.60 days. DSO measures the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO is preferable as it signifies quicker cash collection. The decreasing trend from 49.60 days in June 2021 to 29.27 days in December 2023 indicates more efficient accounts receivable management over time.

The Number of Days of Payables ranged from 9.64 days to 21.74 days. This metric reflects how long a company takes to pay its suppliers. A higher number of days indicates the company is taking longer to pay its bills, which could be beneficial for cash flow management. The fluctuating trend in the number of days of payables suggests varying payment practices over the periods analyzed.

Overall, UFP Industries Inc has shown improvements in inventory turnover and accounts receivable collection efficiency while managing payable days within a certain range. Efforts to further optimize these activity ratios may lead to enhanced working capital management and financial performance.

Long-term

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
Fixed asset turnover 9.30 10.30 11.29 12.80 13.97 15.11 15.20 15.48 14.66 14.49 13.89 12.18 12.35 11.72 11.04 11.15 11.41 11.44 12.09 12.66
Total asset turnover 1.80 1.90 2.11 2.42 2.62 2.60 2.63 2.53 2.66 2.66 2.29 2.13 2.14 2.02 2.15 2.35 2.34 2.34 2.41 2.48

Ufp Industries Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have shown fluctuations over the periods outlined in the table. The fixed asset turnover, a measure of how efficiently the company is utilizing its fixed assets to generate revenue, has generally trended downwards from 2019 to 2023. This indicates that the company may be experiencing lower sales generated by its fixed assets over time.

On the other hand, the total asset turnover, which reflects the company's overall efficiency in generating sales from all its assets, has shown more variability but generally remained relatively stable from 2019 to 2023. This suggests that while the company's fixed asset turnover may have decreased, it has managed to maintain its efficiency in utilizing all its assets to generate revenue.

Overall, Ufp Industries Inc should further investigate the reasons behind the decreasing trend in fixed asset turnover to identify potential inefficiencies in utilizing its fixed assets. Additionally, the company's ability to maintain stable total asset turnover indicates some level of efficiency in utilizing its total assets to drive sales.