Ufp Industries Inc (UFPI)
Working capital 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 current assets | US$ in thousands | 1,260,690 | 2,502,090 | 2,262,110 | 2,073,480 | 1,538,360 |
| Total current liabilities | US$ in thousands | 512,448 | 567,976 | 611,835 | 776,042 | 463,749 |
| Working capital turnover | 8.89 | 3.73 | 5.83 | 6.66 | 4.80 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,652,310K ÷ ($1,260,690K – $512,448K)
= 8.89
The working capital turnover for Ufp Industries Inc has shown fluctuations over the years. In 2020, the working capital turnover was 4.80, indicating that the company generated $4.80 in revenue for every dollar of working capital invested.
This ratio increased significantly to 6.66 in 2021, suggesting a more efficient management of working capital, which may be attributed to improved inventory and receivables management. In 2022, the working capital turnover decreased slightly to 5.83, but still remained at a relatively high level compared to the base year.
However, in 2023, there was a notable decline in the working capital turnover to 3.73, signaling a potential inefficiency in utilizing working capital to generate revenue. It is important for the company to investigate the reasons behind this decline and take corrective actions if necessary.
The most recent data for 2024 shows a significant improvement in the working capital turnover to 8.89, indicating a strong performance in efficiently utilizing working capital to generate revenue. This can be a positive sign of effective working capital management and operational efficiency.
Overall, the trend in working capital turnover for Ufp Industries Inc shows some fluctuations, but the recent increase in the ratio signifies a better utilization of working capital, which can potentially lead to improved financial performance and profitability.