Ufp Industries Inc (UFPI)
Debt-to-equity 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-equity ratio | 0.08 | 0.11 | 0.14 | 0.21 | 0.13 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $233,534K ÷ $2,999,760K
= 0.08
The debt-to-equity ratio of Ufp Industries Inc has exhibited a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio has declined from 0.13 in 2019 to 0.08 in 2023. This suggests that the company has reduced its reliance on debt financing relative to equity financing, which can be viewed positively by investors and creditors. A lower debt-to-equity ratio signifies less financial risk and a healthier balance sheet. It implies that the company has a smaller proportion of debt in its capital structure compared to equity, which may lead to lower interest expenses and a lower likelihood of default. Overall, the decreasing trend in Ufp Industries Inc's debt-to-equity ratio reflects a more conservative and sustainable approach to managing its capital structure.