Ufp Industries Inc (UFPI)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,171,830 | 1,190,810 | 1,042,100 | 980,507 | 1,122,260 | 957,197 | 702,148 | 423,299 | 559,397 | 449,864 | 138,800 | 73,783 | 286,662 | 138,637 | 44,286 | 44,399 | 436,507 | 346,154 | 200,546 | 32,129 |
| Short-term investments | US$ in thousands | 31,087 | 38,935 | 36,740 | 36,978 | 34,745 | 37,062 | 38,459 | 37,534 | 36,013 | 33,113 | 35,475 | 35,465 | 36,495 | 33,723 | 33,827 | 31,439 | 24,308 | 20,530 | 19,195 | 17,778 |
| Total current liabilities | US$ in thousands | 512,448 | 606,031 | 588,388 | 525,018 | 567,976 | 603,727 | 556,004 | 530,359 | 611,835 | 802,861 | 823,993 | 903,202 | 776,042 | 666,670 | 731,317 | 612,059 | 463,749 | 493,604 | 435,212 | 329,255 |
| Cash ratio | 2.35 | 2.03 | 1.83 | 1.94 | 2.04 | 1.65 | 1.33 | 0.87 | 0.97 | 0.60 | 0.21 | 0.12 | 0.42 | 0.26 | 0.11 | 0.12 | 0.99 | 0.74 | 0.50 | 0.15 |
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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a greater ability to cover short-term obligations.
Analyzing the cash ratio of Ufp Industries Inc over the period from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio:
- The cash ratio started at a low of 0.15 on March 31, 2020, indicating a limited ability to cover short-term liabilities with cash.
- The ratio improved significantly to 2.35 by December 31, 2024, reflecting a substantial increase in available cash relative to short-term obligations.
- Between March 31, 2020, and December 31, 2024, the cash ratio generally trended upwards, with some fluctuations, indicating an overall improvement in the company's liquidity position.
- Peaks in the cash ratio, such as 2.35 on December 31, 2024, suggest periods of strong liquidity, while troughs, like 0.11 on June 30, 2021, indicate temporary constraints on cash availability.
- The company's ability to maintain a consistently high cash ratio towards the end of the period may indicate effective cash management and potentially lower financial risk.
Overall, the trend in Ufp Industries Inc's cash ratio suggests an improvement in liquidity and the ability to meet short-term obligations with cash and cash equivalents over the analyzed period.