Ufp Industries Inc (UFPI)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,150,940 | 4,017,800 | 3,672,070 | 3,245,270 | 2,404,890 |
| Total stockholders’ equity | US$ in thousands | 3,224,070 | 2,999,760 | 2,603,700 | 2,016,570 | 1,483,150 |
| Financial leverage ratio | 1.29 | 1.34 | 1.41 | 1.61 | 1.62 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,150,940K ÷ $3,224,070K
= 1.29
The financial leverage ratio for Ufp Industries Inc has shown a declining trend over the past five years, decreasing from 1.62 in December 2020 to 1.29 in December 2024. This indicates that the company has been reducing its reliance on debt financing in relation to equity financing over this period. A decreasing financial leverage ratio can be a positive sign, as it suggests lower financial risk and a more conservative capital structure. However, further analysis of the company's overall financial health and performance is necessary to fully assess the implications of this trend.