Ufp Industries Inc (UFPI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 646,534 | 950,184 | 737,554 | 345,826 | 244,906 |
| Total assets | US$ in thousands | 4,017,800 | 3,672,070 | 3,245,270 | 2,404,890 | 1,889,480 |
| Operating ROA | 16.09% | 25.88% | 22.73% | 14.38% | 12.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $646,534K ÷ $4,017,800K
= 16.09%
The operating return on assets (operating ROA) of Ufp Industries Inc has exhibited some fluctuations over the past five years. The trend shows an improvement from 12.96% in 2019 to 16.09% in 2023, with varying levels in the intervening years. Despite some volatility, the company's operating ROA generally increased over the period, indicating an enhancement in the efficiency of utilizing its assets to generate operating income.
The significant increase from 2019 to 2020 reflects improved asset utilization or increased profitability from operations. The subsequent rise in 2021 and 2022 further reinforces this positive trend. However, there was a slight decrease in 2023 compared to the previous year, although the operating ROA remained relatively strong.
Overall, Ufp Industries Inc's performance in terms of operating ROA suggests effective management of assets to generate operating profits, with a general upward trajectory over the five-year period. Further analysis of the company's operational efficiency and asset management practices would provide a more comprehensive understanding of its financial health and performance.