Ufp Industries Inc (UFPI)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.06 | 0.07 | 0.09 | 0.13 | 0.09 |
| Debt-to-capital ratio | 0.07 | 0.10 | 0.12 | 0.18 | 0.11 |
| Debt-to-equity ratio | 0.08 | 0.11 | 0.14 | 0.21 | 0.13 |
| Financial leverage ratio | 1.34 | 1.43 | 1.64 | 1.65 | 1.52 |
The solvency ratios of Ufp Industries Inc indicate the company's ability to meet its financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio has decreased steadily from 0.13 in 2020 to 0.06 in 2023, signaling a lower proportion of assets financed by debt, which may indicate improved financial stability and reduced risk.
Similarly, the debt-to-capital ratio has also shown a declining trend from 0.18 in 2020 to 0.07 in 2023, suggesting a lower reliance on debt financing relative to the company's total capital structure.
The debt-to-equity ratio has followed a similar pattern, decreasing from 0.21 in 2020 to 0.08 in 2023, indicating a decreasing dependence on debt to finance the company's operations in relation to shareholder equity.
The financial leverage ratio, which measures the company's use of debt to finance its operations, also exhibits a declining trend from 1.65 in 2020 to 1.34 in 2023. This suggests that the company has been reducing its financial risk and becoming less reliant on debt to support its business activities.
Overall, the declining trends in these solvency ratios indicate an improving financial position for Ufp Industries Inc, with lower debt levels relative to assets, capital, equity, and leverage ratios. This suggests a stronger ability to meet its financial obligations and indicates a more sustainable financial structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 53.26 | 67.32 | 52.37 | 36.86 | 28.35 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. The higher the ratio, the more easily a company can cover its interest expenses.
Ufp Industries Inc has shown a generally healthy trend in its interest coverage over the past five years. The ratio has consistently improved from 28.35 in 2019 to 53.26 in 2023, indicating the company's ability to cover its interest payments has significantly strengthened over this period.
The substantial increase in the interest coverage ratio from 2019 to 2023 suggests that Ufp Industries Inc has been generating more operating income relative to its interest expenses. This improvement indicates that the company is in a better position to manage its debt obligations and that its profitability has been increasing over the years.
Overall, Ufp Industries Inc's interest coverage ratio demonstrates a positive trend, reflecting the company's ability to comfortably meet its interest payments and suggesting a stable financial position.