Ufp Industries Inc (UFPI)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 233,534 | 275,154 | 277,567 | 311,607 | 160,867 |
| Total assets | US$ in thousands | 4,017,800 | 3,672,070 | 3,245,270 | 2,404,890 | 1,889,480 |
| Debt-to-assets ratio | 0.06 | 0.07 | 0.09 | 0.13 | 0.09 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $233,534K ÷ $4,017,800K
= 0.06
The debt-to-assets ratio of Ufp Industries Inc has been relatively stable over the past five years, ranging from 0.06 to 0.13. A lower debt-to-assets ratio indicates that the company relies less on debt to finance its operations and investments, while a higher ratio suggests a higher level of leverage.
Ufp Industries Inc's decreasing debt-to-assets ratio from 0.13 in 2020 to 0.06 in 2023 reflects a decreasing reliance on debt financing relative to its total assets. This could indicate a positive trend towards a more conservative financial structure and reduced financial risk.
Overall, Ufp Industries Inc maintains a conservative approach to debt financing, as reflected in its consistently low debt-to-assets ratio over the past five years. This suggests that the company may have a strong financial position and be able to weather economic downturns or challenges.