Ufp Industries Inc (UFPI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,017,800 | 3,672,070 | 3,245,270 | 2,404,890 | 1,889,480 |
| Total stockholders’ equity | US$ in thousands | 2,999,760 | 2,563,980 | 1,978,610 | 1,460,320 | 1,243,720 |
| Financial leverage ratio | 1.34 | 1.43 | 1.64 | 1.65 | 1.52 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,017,800K ÷ $2,999,760K
= 1.34
The financial leverage ratio of Ufp Industries Inc has shown a decreasing trend over the past five years. The ratio declined from 1.52 in 2019 to 1.34 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments, which could be a positive sign of improved financial stability and reduced risk of financial distress. However, it is important to note that a lower financial leverage ratio may also imply lower potential returns on equity for shareholders, as leverage can amplify both gains and losses. Overall, the decreasing trend in the financial leverage ratio suggests that Ufp Industries Inc has been managing its debt levels more prudently in recent years.