Ufp Industries Inc (UFPI)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 48.49 | 43.37 | 45.09 | 48.16 | 45.80 | 44.53 | 45.85 | 48.08 | 45.33 | 46.37 | 51.64 | 58.31 | 48.64 | 48.41 | 59.76 | 59.78 | 47.59 | 48.43 | 45.13 | 49.95 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 48.49 | 43.37 | 45.09 | 48.16 | 45.80 | 44.53 | 45.85 | 48.08 | 45.33 | 46.37 | 51.64 | 58.31 | 48.64 | 48.41 | 59.76 | 59.78 | 47.59 | 48.43 | 45.13 | 49.95 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 48.49 + — – —
= 48.49
The cash conversion cycle of Ufp Industries Inc has shown fluctuations over the years based on the provided data. The cash conversion cycle indicates the time it takes for a company to convert its investments in inventory back into cash.
From March 31, 2020, to June 30, 2020, there was a slight improvement in the cash conversion cycle from 49.95 days to 45.13 days. However, this trend was reversed in the following periods until March 31, 2021, where the cycle increased significantly to 59.78 days. This prolonged cycle could indicate potential issues with inventory management or a slowdown in the collection of receivables.
There have been fluctuations in the cash conversion cycle throughout 2021 and 2022, with some periods showing improvements while others experienced slight increases or remained relatively stable. Notably, the cycle decreased to 43.37 days by September 30, 2024, from a peak of 59.76 days in June 30, 2021, suggesting better efficiency in managing cash flows and working capital.
Overall, the cash conversion cycle of Ufp Industries Inc has displayed variability over the years, with periods of both improvement and deterioration. It is essential for the company to closely monitor and manage its cash conversion cycle to ensure efficient operations and maintain healthy cash flows.