Ufp Industries Inc (UFPI)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 552,864 | 684,083 | 950,184 | 737,554 | 345,826 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,224,070 | 2,999,760 | 2,603,700 | 2,016,570 | 1,483,150 |
| Return on total capital | 17.15% | 22.80% | 36.49% | 36.57% | 23.32% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $552,864K ÷ ($—K + $3,224,070K)
= 17.15%
The return on total capital for Ufp Industries Inc has exhibited fluctuations over the past five years. The trend indicates a notable increase from 23.32% as of December 31, 2020, to 36.57% by December 31, 2021, and a relatively consistent level around the mid-thirties for the subsequent two years.
However, there was a decline in the return on total capital in the most recent year, dropping to 17.15% as at December 31, 2024. This decrease suggests potential challenges in generating returns on the total capital employed by the company during that period compared to previous years.
It is essential for stakeholders to further investigate the factors influencing this downward trend in the return on total capital to assess the operational efficiency and profitability of Ufp Industries Inc and consider strategies to enhance its overall financial performance and sustainability.