Ufp Industries Inc (UFPI)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,218,380 | 9,626,740 | 8,636,130 | 5,154,000 | 4,416,010 |
| Total current assets | US$ in thousands | 2,502,090 | 2,262,110 | 2,073,480 | 1,538,360 | 1,093,070 |
| Total current liabilities | US$ in thousands | 567,976 | 611,835 | 776,042 | 463,749 | 354,042 |
| Working capital turnover | 3.73 | 5.83 | 6.66 | 4.80 | 5.98 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,218,380K ÷ ($2,502,090K – $567,976K)
= 3.73
The working capital turnover of Ufp Industries Inc has displayed fluctuations over the past five years. The ratio decreased from 5.98 in 2019 to 4.80 in 2020, before increasing to 6.66 in 2021. Subsequently, in 2022, there was a further increase to 5.83, followed by a slight decline to 3.73 in 2023. This ratio indicates how effectively the company is utilizing its working capital to generate sales revenue. A higher working capital turnover signifies that the company is efficiently managing its working capital to support its sales activities. Despite the fluctuations, Ufp Industries Inc generally demonstrates a strong ability to convert its working capital into sales.