Ufp Industries Inc (UFPI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.44% | 19.66% | 18.59% | 16.29% | 15.53% |
| Operating profit margin | 7.40% | 9.04% | 9.87% | 8.54% | 6.71% |
| Pretax margin | 8.12% | 9.30% | 9.71% | 8.41% | 6.62% |
| Net profit margin | 6.23% | 7.13% | 7.20% | 6.20% | 4.79% |
Ufp Industries Inc has shown an improvement in its gross profit margin over the past five years, with an increase from 15.53% in 2020 to 18.44% in 2024. This suggests that the company has been able to manage its cost of goods sold effectively and generate higher gross profits relative to its sales.
In terms of operating profit margin, there was an uptrend from 6.71% in 2020 to 9.87% in 2022, indicating improved operational efficiency. However, there was a slight decrease to 7.40% in 2024, which could suggest some challenges in managing operating expenses.
The pretax margin also exhibited a positive trend, rising from 6.62% in 2020 to 9.71% in 2022 before declining slightly to 8.12% in 2024. This indicates the company's ability to generate higher profits before tax relative to its revenue.
Net profit margin, which reflects the overall profitability of the company after accounting for all expenses and taxes, increased from 4.79% in 2020 to 7.13% in 2023, but then decreased to 6.23% in 2024. This suggests that while the company has been able to improve its bottom-line profitability, there may have been some challenges affecting its net income in the most recent year.
Overall, Ufp Industries Inc has shown positive trends in its profitability margins over the past five years, although there was a slight decrease in some margins in the most recent year. Investors may want to further assess the reasons behind these changes to evaluate the company's financial performance accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.86% | 16.24% | 25.88% | 22.73% | 14.38% |
| Return on assets (ROA) | 9.99% | 12.80% | 18.86% | 16.51% | 10.26% |
| Return on total capital | 17.15% | 22.80% | 36.49% | 36.57% | 23.32% |
| Return on equity (ROE) | 12.86% | 17.15% | 26.60% | 26.56% | 16.64% |
Based on the provided data for Ufp Industries Inc, the profitability ratios show positive trends over the years, with some fluctuations in certain ratios.
1. Operating Return on Assets (Operating ROA): This ratio indicates the company's operating efficiency in generating profits from its assets. Ufp Industries Inc has shown a strong improvement in this ratio from 14.38% in 2020 to 25.88% in 2022, but then experienced a slight decline to 16.24% in 2023 and further to 11.86% in 2024.
2. Return on Assets (ROA): This metric reflects the company's overall ability to generate profits from its total assets. Ufp Industries Inc's ROA also exhibited an upward trend from 10.26% in 2020 to 18.86% in 2022, followed by a slight decrease in 2023 and 2024.
3. Return on Total Capital: This ratio demonstrates the return generated by the company from all its invested capital. Ufp Industries Inc saw a significant increase in this ratio from 23.32% in 2020 to 36.57% in 2021 and remained relatively stable at around 36% in 2022, before decreasing to 17.15% by 2024.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. Ufp Industries Inc's ROE also followed an upward trajectory from 16.64% in 2020 to 26.60% in 2022, then experienced a decline in 2023 and 2024.
Overall, Ufp Industries Inc has shown a strong performance in terms of profitability ratios, with improvements in most metrics over the years, although there are variations in the trends for different ratios. Monitoring these ratios can provide insights into the company's operational efficiency and financial performance.