Ufp Industries Inc (UFPI)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 414,560 | 514,312 | 692,651 | 535,640 | 246,778 |
| Total stockholders’ equity | US$ in thousands | 3,224,070 | 2,999,760 | 2,603,700 | 2,016,570 | 1,483,150 |
| ROE | 12.86% | 17.15% | 26.60% | 26.56% | 16.64% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $414,560K ÷ $3,224,070K
= 12.86%
Ufp Industries Inc's Return on Equity (ROE) has shown variability over the past five years. The ROE increased from 16.64% as of December 31, 2020, to 26.56% as of December 31, 2021, indicating an improvement in the company's ability to generate profits from shareholders' equity.
Subsequently, the ROE remained relatively stable around the 26% mark for the next two years, as of December 31, 2022 and December 31, 2023. This consistency suggests that Ufp Industries Inc was able to maintain an efficient use of its equity to generate returns during this period.
However, there was a decline in ROE to 17.15% as of December 31, 2023, followed by a further decrease to 12.86% as of December 31, 2024. These downward trends could indicate challenges or inefficiencies in the company's operations or financial management, impacting its ability to generate profits relative to shareholders' equity.
Overall, Ufp Industries Inc's ROE performance highlights both positive and negative aspects over the five-year period, underscoring the need for further analysis to understand the factors driving these fluctuations and their implications for the company's financial health and strategies.