Ufp Industries Inc (UFPI)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,171,830 | 1,118,330 | 559,397 | 286,662 | 436,507 |
| Short-term investments | US$ in thousands | 31,087 | 34,745 | 36,013 | 36,495 | 24,308 |
| Total current liabilities | US$ in thousands | 512,448 | 567,976 | 611,835 | 776,042 | 463,749 |
| Cash ratio | 2.35 | 2.03 | 0.97 | 0.42 | 0.99 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,171,830K
+ $31,087K)
÷ $512,448K
= 2.35
The cash ratio of Ufp Industries Inc has shown fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.99, indicating that the company had almost enough cash and cash equivalents to cover its current liabilities. However, by December 31, 2021, the cash ratio decreased to 0.42, suggesting a decrease in the company's liquidity position.
Subsequently, there was an improvement in the cash ratio by December 31, 2022, reaching 0.97, but still below the ideal value of 1. This indicates that the company may have faced liquidity challenges during that period. Notably, by December 31, 2023, the cash ratio significantly improved to 2.03, surpassing the threshold of 1, which is considered favorable as it implies a strong ability to meet short-term obligations using cash reserves.
Furthermore, as of the most recent data point on December 31, 2024, the cash ratio further increased to 2.35, indicating a continued strengthening of the company's liquidity position. Overall, the trend in Ufp Industries Inc's cash ratio shows volatility in liquidity levels but with recent improvements, suggesting a more robust ability to cover short-term obligations with its available cash and cash equivalents.