Ufp Industries Inc (UFPI)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,017,800 | 4,004,080 | 3,843,940 | 3,696,790 | 3,672,070 | 3,738,550 | 3,610,820 | 3,673,970 | 3,245,270 | 3,014,250 | 3,228,280 | 2,786,090 | 2,404,890 | 2,350,620 | 2,058,610 | 1,882,980 | 1,889,480 | 1,880,620 | 1,850,660 | 1,821,400 |
| 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 |
| Financial leverage ratio | 1.34 | 1.37 | 1.37 | 1.38 | 1.43 | 1.53 | 1.58 | 1.69 | 1.64 | 1.63 | 1.86 | 1.78 | 1.65 | 1.68 | 1.55 | 1.49 | 1.52 | 1.55 | 1.59 | 1.62 |
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 fluctuations over the past few quarters. The ratio has ranged from 1.34 to 1.86, indicating changes in the company's level of debt relative to its equity.
A higher financial leverage ratio suggests that the company relies more on debt financing, which can magnify returns but also increase financial risk. A lower ratio indicates a lower level of debt relative to equity, which can imply a more conservative capital structure.
The trend in Ufp Industries Inc's financial leverage ratio shows a general increase from 2019 to 2022, peaking at 1.86 in the second quarter of 2021 and then experiencing a slight decline. This could indicate a shift in the company's capital structure or financing strategy over the period.
Analyzing the financial leverage ratio alongside other financial metrics and industry benchmarks would provide a more comprehensive understanding of Ufp Industries Inc's overall financial health and risk profile.