Ufp Industries Inc (UFPI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.88 | 4.31 | 4.34 | 4.79 | 4.41 | 4.18 | 4.34 | 4.27 | 3.70 | 3.03 | 2.88 | 2.74 | 2.67 | 2.88 | 2.90 | 2.84 | 3.32 | 3.06 | 2.84 | 3.22 |
| Quick 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 |
| 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 |
Ufp Industries Inc's current ratio, a measure of short-term liquidity, has shown fluctuation over the years but generally trended upwards, indicating sufficient current assets to cover current liabilities. The current ratio improved from 3.22 in March 2020 to 4.88 in December 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also displayed a positive trend. It increased from 0.15 in March 2020 to 2.35 in December 2024, signaling an enhanced ability to meet short-term obligations without relying on inventory.
Additionally, the cash ratio, representing the most conservative liquidity measure as it considers only cash and cash equivalents to current liabilities, showed a similar upward trajectory. It climbed from 0.15 in March 2020 to 2.35 in December 2024, indicating a strengthening ability to cover immediate liabilities with available cash resources.
Overall, the liquidity ratios of Ufp Industries Inc have generally improved over the years, reflecting a healthier liquidity position and enhanced ability to meet short-term obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | 48.49 | 43.37 | 45.09 | 48.16 | 45.80 | 44.53 | 45.85 | 48.08 | 45.33 | 46.37 | 51.64 | 58.31 | 48.64 | 48.41 | 59.76 | 59.78 | 47.59 | 48.43 | 45.13 | 49.95 |
The cash conversion cycle of Ufp Industries Inc has fluctuated over the periods presented. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory into cash flows from sales. A shorter cash conversion cycle is generally favorable as it indicates efficient management of working capital.
From March 2020 to June 2020, there was a decrease in the cash conversion cycle from 49.95 days to 45.13 days, suggesting an improvement in the company's ability to manage inventory and collect cash from sales. However, by March 2021, the cash conversion cycle increased significantly to 59.78 days, indicating a potential delay in converting inventory into cash.
Throughout the following periods, there were fluctuations in the cash conversion cycle, with values ranging between 43.37 days and 59.76 days. Notably, the cycle decreased to 43.37 days by September 30, 2024, indicating a positive trend towards greater efficiency in working capital management.
Overall, the analysis suggests that Ufp Industries Inc has experienced variability in its cash conversion cycle performance, indicating fluctuations in inventory management, accounts receivable collection, and accounts payable payment processes. Ongoing monitoring and improvement in these operational areas can lead to enhanced cash flow and working capital efficiency for the company.