Ufp Industries Inc (UFPI)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 1,418,938 | 1,480,266 | 1,566,042 | 1,669,427 | 1,789,461 | 1,803,555 | 1,680,934 | 1,598,776 | 1,406,967 | 1,222,458 | 1,135,977 | 919,614 | 800,296 | 770,496 | 716,692 | 698,487 | 685,518 | 665,906 | 637,309 | 616,272 |
| Revenue (ttm) | US$ in thousands | 7,218,390 | 7,607,740 | 8,102,960 | 8,959,910 | 9,626,740 | 9,729,840 | 9,500,760 | 9,300,430 | 8,636,120 | 8,013,030 | 7,405,480 | 5,946,940 | 5,154,000 | 4,758,330 | 4,435,130 | 4,432,950 | 4,416,010 | 4,406,151 | 4,455,821 | 4,510,441 |
| Gross profit margin | 19.66% | 19.46% | 19.33% | 18.63% | 18.59% | 18.54% | 17.69% | 17.19% | 16.29% | 15.26% | 15.34% | 15.46% | 15.53% | 16.19% | 16.16% | 15.76% | 15.52% | 15.11% | 14.30% | 13.66% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,418,938K ÷ $7,218,390K
= 19.66%
Ufp Industries Inc has shown an upward trend in its gross profit margin over the past few quarters, reflecting improvements in its ability to generate profits from sales after deducting the cost of goods sold. The gross profit margin increased steadily from 13.66% in March 2019 to 19.66% in December 2023. This signifies a positive trend in the company's operational efficiency and pricing strategy, indicating that Ufp Industries Inc has been able to effectively manage its production costs and maintain pricing power in the market.
The consistent increase in the gross profit margin suggests that Ufp Industries Inc has been successful in controlling its direct costs related to production and sales. This improvement may be attributed to various factors such as economies of scale, better inventory management, effective procurement strategies, and pricing adjustments. The company's focus on cost efficiencies and revenue optimization appears to be paying off as evidenced by the steady improvement in its gross profit margin.
Overall, the rising gross profit margin of Ufp Industries Inc indicates that the company is effectively managing its operational costs and pricing structure, which bodes well for its profitability and financial performance in the future.