Ufp Industries Inc (UFPI)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,652,310 | 7,218,380 | 9,626,740 | 8,636,130 | 5,154,000 |
| Total assets | US$ in thousands | 4,150,940 | 4,017,800 | 3,672,070 | 3,245,270 | 2,404,890 |
| Total asset turnover | 1.60 | 1.80 | 2.62 | 2.66 | 2.14 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,652,310K ÷ $4,150,940K
= 1.60
The total asset turnover for Ufp Industries Inc has shown fluctuations over the period under review. In December 31, 2020, the total asset turnover was 2.14, indicating that the company generated $2.14 in revenue for every dollar of total assets. Subsequently, the ratio improved to 2.66 by December 31, 2021, suggesting that the company became more efficient in utilizing its assets to generate revenue.
However, by December 31, 2022, the total asset turnover slightly decreased to 2.62, still indicating efficient utilization of assets. There was a significant decline in the ratio to 1.80 by December 31, 2023, suggesting a decrease in revenue generated per dollar of assets. This could raise concerns about potential inefficiencies in asset utilization or a change in the asset base.
Furthermore, by December 31, 2024, the total asset turnover decreased further to 1.60, indicating a continued decline in efficiency in generating revenue from total assets. It would be crucial for Ufp Industries Inc to evaluate its asset management strategies and operational efficiency to improve the total asset turnover ratio and enhance overall financial performance in the future.