Ufp Industries Inc (UFPI)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	233,534	273,308	274,821	275,002	275,154	275,417	276,315	379,015	277,567	310,119	571,856	426,310	311,607	311,267	161,057	160,550	160,867	162,853	187,471	266,428
Total stockholders’ equity	US$ in thousands	2,999,760	2,919,380	2,803,380	2,675,780	2,563,980	2,437,080	2,280,150	2,177,890	1,978,610	1,850,770	1,736,530	1,566,210	1,460,320	1,397,590	1,324,400	1,260,710	1,243,720	1,215,460	1,167,380	1,122,900
Debt-to-capital ratio		0.07	0.09	0.09	0.09	0.10	0.10	0.11	0.15	0.12	0.14	0.25	0.21	0.18	0.18	0.11	0.11	0.11	0.12	0.14	0.19

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 fluctuations over the past few years. The ratio decreased from 0.19 in September 2019 to 0.07 in December 2023, indicating a significant improvement in the company's capital structure.

However, it is important to note that the ratio increased in the middle of 2021, reaching 0.25 in June 2021, which could suggest increased reliance on debt during that period. Subsequently, there was a downward trend in the ratio, indicating a gradual shift towards a more balanced mix of debt and equity in the company's capital structure.

Overall, the decreasing trend in the debt-to-capital ratio from 2021 to 2023 reflects a positive sign of reducing leverage and improving financial stability for Ufp Industries Inc. It is essential for the company to continue monitoring and managing its debt levels effectively to maintain a healthy balance between debt and equity in its capital structure.