Ufp Industries Inc (UFPI)

Quick ratio

		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	US$ in thousands	1,118,330	957,092	702,148	423,299	559,397	449,135	138,071	73,783	286,662	138,637	44,286	44,399	436,507	346,154	200,546	32,129	168,336	64,498	20,497	17,111
Short-term investments	US$ in thousands	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	18,527	17,028	16,776	16,197
Receivables	US$ in thousands	578,826	724,039	816,017	—	650,730	906,547	1,059,630	1,095,360	742,611	798,093	980,571	808,105	476,340	583,079	522,930	463,445	377,299	476,198	483,263	448,740
Total current liabilities	US$ in thousands	567,976	601,835	556,004	530,359	611,835	802,861	823,993	903,202	776,042	665,670	731,317	611,031	463,749	493,604	435,212	329,255	354,042	385,448	379,606	320,569
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,118,330K + $34,745K + $578,826K) ÷ $567,976K
= 3.05

The quick ratio of Ufp Industries Inc has shown fluctuations over the past few quarters. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.

From the data provided, we can see that the quick ratio was relatively stable and strong in 2020, ranging from 1.71 to 2.02. However, there was a significant drop in the quick ratio in the first quarter of 2023, where it fell to 0.87, indicating a potential liquidity issue or challenges in meeting short-term obligations.

Subsequently, the quick ratio improved in the following quarters, reaching 2.85 in the third quarter of 2023. This rebound suggests that the company may have taken steps to improve its liquidity position and manage its short-term obligations more effectively.

Overall, while there have been fluctuations in the quick ratio of Ufp Industries Inc, the recent upward trend indicates an improvement in the company's ability to cover its short-term liabilities with its liquid assets. It would be important to continue monitoring the quick ratio to ensure the company's liquidity remains at a healthy level.