Ufp Industries Inc (UFPI)
Total asset 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,652,310 | 6,714,660 | 6,892,920 | 7,034,880 | 7,218,390 | 7,607,740 | 8,102,960 | 8,959,910 | 9,626,740 | 9,729,840 | 9,500,760 | 9,300,430 | 8,636,120 | 8,013,030 | 7,405,480 | 5,946,940 | 5,154,000 | 4,758,331 | 4,435,131 | 4,432,951 |
| Total assets | US$ in thousands | 4,150,940 | 4,217,880 | 4,138,490 | 4,078,640 | 4,017,800 | 4,020,130 | 3,843,940 | 3,696,790 | 3,672,070 | 3,738,550 | 3,610,820 | 3,673,970 | 3,245,270 | 3,010,250 | 3,226,280 | 2,790,220 | 2,404,890 | 2,350,620 | 2,058,610 | 1,882,980 |
| Total asset turnover | 1.60 | 1.59 | 1.67 | 1.72 | 1.80 | 1.89 | 2.11 | 2.42 | 2.62 | 2.60 | 2.63 | 2.53 | 2.66 | 2.66 | 2.30 | 2.13 | 2.14 | 2.02 | 2.15 | 2.35 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $6,652,310K ÷ $4,150,940K
= 1.60
Ufp Industries Inc's total asset turnover ratio has shown some fluctuations over the past few years. The ratio was relatively stable around 2.1 to 2.2 from March 2020 to June 2021, indicating that the company generated around $2.10 to $2.20 in revenue for every dollar invested in total assets during that period.
However, we observed an increase in the total asset turnover ratio starting from September 2021, reaching a peak of 2.66 at the end of December 2021 and maintaining this level through the first half of 2022. This suggests that Ufp Industries Inc became more efficient in utilizing its assets to generate revenue during this period.
Subsequently, there was a slight decline in the ratio in the following quarters, hovering around 2.50 in March 2023 and June 2023. However, from September 2023 onward, the total asset turnover ratio started to decrease more significantly, dropping to 1.59 at the end of September 2024. This decline may indicate that the company's efficiency in generating revenue from its total assets has decreased, which could be a cause for concern.
In summary, while Ufp Industries Inc's total asset turnover ratio has shown fluctuations over the years, the recent decline from 2.60 in June 2024 to 1.60 in December 2024 suggests a potential inefficiency in utilizing assets to generate revenue, warranting further investigation into the company's operational performance and asset management strategies.