Ufp Industries Inc (UFPI)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.46 | 4.41 | 3.70 | 2.67 | 3.32 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,260,690K ÷ $512,448K
= 2.46
Ufp Industries Inc's current ratio has shown fluctuations over the past five years, ranging from a low of 2.46 as of December 31, 2024, to a high of 4.41 as of December 31, 2023. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. Generally, a higher current ratio indicates stronger liquidity and financial health, as the company has more current assets to cover its current liabilities.
Based on the trend, the company experienced a significant improvement in liquidity from 2020 to 2023, as the current ratio increased steadily. However, the current ratio dropped in 2024, which may raise concerns about the company's ability to meet its short-term obligations with its current assets. This could indicate potential liquidity challenges or inefficient management of working capital during that period.
Overall, while the current ratio for Ufp Industries Inc has shown some volatility, the company has maintained generally healthy liquidity levels over the past five years, with ratios above 2 indicating a comfortable cushion for short-term obligations. Yet, management should continue to monitor and manage liquidity effectively to ensure the company remains financially sound and can meet its short-term liabilities in a timely manner.