Ufp Industries Inc (UFPI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.29 | 1.34 | 1.41 | 1.61 | 1.62 |
Ufp Industries Inc's solvency ratios reflect a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the period from December 31, 2020, to December 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained at 0.00 throughout the period, indicating that the company has no significant debt burden in relation to its total assets, capital, and equity.
Additionally, the Financial leverage ratio, which measures the extent to which the company relies on debt financing, showed a declining trend from 1.62 in 2020 to 1.29 in 2024. This decreasing trend suggests that Ufp Industries Inc has been effectively managing its financial leverage by reducing its dependence on debt to support its operations and growth.
Overall, the solvency ratios indicate that Ufp Industries Inc has a solid financial foundation with minimal levels of debt, demonstrating the company's ability to meet its financial obligations and maintain stability in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 43.50 | 53.27 | 61.83 | 65.75 | 37.14 |
The interest coverage ratio for Ufp Industries Inc has shown a consistent and strong trend over the past five years, reflecting the company's ability to meet its interest obligations comfortably. The ratio increased from 37.14 in December 31, 2020, to 65.75 in December 31, 2021, indicating a significant improvement in the company's ability to cover its interest expenses with its operating income.
Subsequently, there was a slight decrease in the interest coverage ratio to 61.83 in December 31, 2022, followed by a further decline to 53.27 in December 31, 2023. Despite the slight decreases, the company's interest coverage ratio remained at healthy levels, demonstrating a solid financial position.
In the most recent year, ending December 31, 2024, the interest coverage ratio decreased to 43.50. While this marked a further decline from the previous year, the ratio still indicates that Ufp Industries Inc has sufficient earnings to cover its interest payments, although it may be worth monitoring for any potential impact on the company's financial health.
Overall, the trend in Ufp Industries Inc's interest coverage ratio suggests that the company has been effectively managing its debt obligations and generating enough operating income to comfortably cover its interest expenses.