Ufp Industries Inc (UFPI)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.41 | 4.16 | 4.34 | 4.27 | 3.70 | 3.03 | 2.88 | 2.74 | 2.67 | 2.89 | 2.90 | 2.84 | 3.32 | 3.06 | 2.84 | 3.22 | 3.09 | 2.83 | 2.89 | 3.44 |
| Quick ratio | 3.05 | 2.85 | 2.80 | 0.87 | 2.04 | 1.73 | 1.50 | 1.33 | 1.37 | 1.46 | 1.45 | 1.45 | 2.02 | 1.92 | 1.71 | 1.56 | 1.59 | 1.45 | 1.37 | 1.50 |
| Cash ratio | 2.03 | 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 | 0.53 | 0.21 | 0.10 | 0.10 |
Ufp Industries Inc has shown a consistently strong liquidity position over the past few quarters, as evident from its current ratio, quick ratio, and cash ratio. The current ratio has been well above 2, ranging from 2.67 to 4.41, indicating that the company has more than enough current assets to cover its current liabilities. This suggests a healthy liquidity position and the ability to meet short-term obligations comfortably.
The quick ratio, which excludes inventory from current assets, also reflects a solid liquidity position, although it is slightly lower than the current ratio. The quick ratio has been above 1 in all periods, ranging from 1.33 to 3.05, indicating that the company can cover its short-term liabilities without relying on selling inventory.
The cash ratio, which is the most conservative liquidity measure, has shown fluctuations but overall has been at reasonable levels. The cash ratio has fluctuated between 0.12 and 2.03, indicating that the company has a moderate ability to cover its current liabilities with cash and cash equivalents alone.
Overall, the liquidity ratios of Ufp Industries Inc demonstrate a strong financial position with ample liquidity to meet its short-term obligations. However, it is essential for the company to monitor the fluctuations in the cash ratio and work towards maintaining a stable liquidity position to ensure financial stability and operational flexibility.
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 62.29 | 64.03 | 67.85 | 34.16 | 60.36 | 65.48 | 74.29 | 81.11 | 63.91 | 69.02 | 87.16 | 87.64 | 63.56 | 71.97 | 68.57 | 72.23 | 64.88 | 68.59 | 71.99 | 74.70 |
The cash conversion cycle of Ufp Industries Inc has exhibited fluctuations over the past few quarters, indicating varying efficiency in managing its working capital. The company's ability to convert its resources into cash has seen improvement in the most recent quarter, with a cycle of 62.29 days at the end of December 2023. This suggests that the company took slightly less time to sell inventory, collect receivables, and pay off its payables.
However, it is important to note that the cash conversion cycle was relatively shorter in the first quarter of 2023 compared to subsequent quarters, potentially indicating a temporary improvement in working capital management during that period. The cycle then increased in the following quarters before showing a declining trend towards the end of the year.
Overall, Ufp Industries Inc may benefit from further streamlining its operating cycle by enhancing inventory turnover, optimizing accounts receivable collection, and effectively managing accounts payable to reduce the time it takes to convert its investments in raw materials into cash receipts.