Ufp Industries Inc (UFPI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 683,938 | 936,413 | 723,426 | 343,190 | 246,620 |
| Long-term debt | US$ in thousands | 233,534 | 275,154 | 277,567 | 311,607 | 160,867 |
| Total stockholders’ equity | US$ in thousands | 2,999,760 | 2,563,980 | 1,978,610 | 1,460,320 | 1,243,720 |
| Return on total capital | 21.15% | 32.98% | 32.06% | 19.37% | 17.56% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $683,938K ÷ ($233,534K + $2,999,760K)
= 21.15%
Ufp Industries Inc's return on total capital has shown some fluctuations over the past five years. In 2023, the return on total capital was 21.15%, which was lower than the previous year's figure of 32.98% in 2022 but higher than 2019 and 2020. The company's return on total capital was highest in 2022 at 32.98%, indicating a strong performance in utilizing its capital efficiently. The consistent high returns over the years suggest that the company has been effective in generating profits relative to the total capital invested in the business. However, the decrease in 2023 compared to the previous year raises the question of whether there may have been changes in the company's capital structure or operational efficiency. Further analysis would be needed to determine the factors influencing these fluctuations and evaluate the sustainability of Ufp Industries Inc's return on total capital.