Ufp Industries Inc (UFPI)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 646,534 | 691,086 | 760,798 | 852,867 | 950,184 | 976,642 | 907,723 | 859,092 | 737,554 | 630,782 | 569,258 | 424,682 | 345,827 | 309,348 | 273,214 | 255,092 | 244,906 | 238,588 | 225,112 | 211,492 |
| Total assets | US$ in thousands | 4,017,800 | 4,004,080 | 3,843,940 | 3,696,790 | 3,672,070 | 3,738,550 | 3,610,820 | 3,673,970 | 3,245,270 | 3,014,250 | 3,228,280 | 2,786,090 | 2,404,890 | 2,350,620 | 2,058,610 | 1,882,980 | 1,889,480 | 1,880,620 | 1,850,660 | 1,821,400 |
| Operating ROA | 16.09% | 17.26% | 19.79% | 23.07% | 25.88% | 26.12% | 25.14% | 23.38% | 22.73% | 20.93% | 17.63% | 15.24% | 14.38% | 13.16% | 13.27% | 13.55% | 12.96% | 12.69% | 12.16% | 11.61% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $646,534K ÷ $4,017,800K
= 16.09%
Ufp Industries Inc has demonstrated a consistent improvement in its operating return on assets (operating ROA) over the past five quarters, with the ratio increasing from 11.61% in the first quarter of 2019 to 23.07% in the first quarter of 2023. This upward trend indicates that the company has been effectively generating operating profits relative to its assets.
The trajectory of the operating ROA highlights Ufp Industries Inc's ability to efficiently utilize its assets to generate operating income. The sharp increase in the ratio from 13.27% in the fourth quarter of 2020 to 25.88% in the fourth quarter of 2022 suggests a significant improvement in operational efficiency during that period.
The operating ROA peaked at 26.12% in the third quarter of 2022 before experiencing a slight decline in the following quarters. Despite the fluctuations, the ratio has consistently remained above 20% since the third quarter of 2021, indicating a strong performance in terms of operational profitability.
Overall, the upward trend and relatively high levels of operating ROA demonstrate Ufp Industries Inc's effectiveness in managing its operations and maximizing the returns generated from its asset base.