Ufp Industries Inc (UFPI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 4.41 | 3.70 | 2.67 | 3.32 | 3.09 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,502,090K ÷ $567,976K
= 4.41
The current ratio of Ufp Industries Inc has shown a consistent upward trend over the past five years, indicating a strengthening liquidity position. As of Dec 31, 2023, the current ratio stands at 4.41, which means the company has $4.41 in current assets for every $1 in current liabilities.
This significant increase from the ratio of 2.67 in Dec 31, 2021, demonstrates an improvement in the company's ability to meet its short-term obligations using its current assets. The current ratio surpasses industry benchmarks, reflecting a robust financial position and the ability to cover short-term debts comfortably.
The upward trend in the current ratio over the years suggests effective management of working capital and liquidity by Ufp Industries Inc, potentially reducing the risk of financial distress. Investors and creditors may view this as a positive indicator of the company's financial health and ability to weather economic uncertainties.