Ufp Industries Inc (UFPI)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 524,392 | 553,920 | 584,186 | 618,649 | 646,534 | 691,086 | 760,798 | 852,867 | 950,184 | 976,642 | 907,723 | 859,092 | 737,554 | 633,627 | 572,103 | 427,527 | 348,672 | 310,913 | 274,779 | 256,657 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,224,070 | 3,174,430 | 3,096,810 | 3,087,760 | 2,999,760 | 2,968,950 | 2,841,770 | 2,712,440 | 2,603,700 | 2,437,080 | 2,280,150 | 2,218,170 | 2,016,570 | 1,877,470 | 1,759,560 | 1,586,540 | 1,483,150 | 1,413,800 | 1,339,320 | 1,272,280 |
| Return on total capital | 16.26% | 17.45% | 18.86% | 20.04% | 21.55% | 23.28% | 26.77% | 31.44% | 36.49% | 40.07% | 39.81% | 38.73% | 36.57% | 33.75% | 32.51% | 26.95% | 23.51% | 21.99% | 20.52% | 20.17% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $524,392K ÷ ($—K + $3,224,070K)
= 16.26%
Ufp Industries Inc's return on total capital has displayed a fluctuating trend over the past few years. Starting from March 31, 2020, the return on total capital was at 20.17% and showed a gradual increase, reaching its peak at 40.07% on September 30, 2022. This upward trajectory suggests effective utilization of capital to generate returns during this period.
However, there was a notable decline in the return on total capital figures from that peak, with a significant drop to 16.26% on December 31, 2024. This decline indicates a potential decrease in the company's efficiency in generating returns relative to the total capital employed.
Overall, it is essential for Ufp Industries Inc to consistently monitor and manage its return on total capital performance to ensure efficient allocation of resources and sustainable profitability in the long term.