Ufp Industries Inc (UFPI)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,999,760 | 2,563,980 | 1,978,610 | 1,460,320 | 1,243,720 |
| Debt-to-capital ratio | 0.07 | 0.10 | 0.12 | 0.18 | 0.11 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $233,534K ÷ ($233,534K + $2,999,760K)
= 0.07
The debt-to-capital ratio of Ufp Industries Inc has shown a decreasing trend over the past five years, declining from 0.11 in 2019 to 0.07 in 2023. This ratio indicates that the company's reliance on debt as a source of financing relative to its total capital has been decreasing. A lower debt-to-capital ratio can be viewed positively as it suggests a lower financial risk and greater financial stability. It also indicates that the company has been able to reduce its debt levels or increase its equity portion in the capital structure over the years. Overall, the decreasing trend in the debt-to-capital ratio reflects a stronger financial position and improved capital structure of Ufp Industries Inc.