Ufp Industries Inc (UFPI)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	683,938	722,940	775,692	850,582	936,413	946,267	879,051	839,202	723,426	625,401	569,808	426,015	343,191	306,515	270,161	252,432	246,620	236,703	222,901	208,324
Interest expense (ttm)	US$ in thousands	12,842	13,295	13,606	13,726	13,910	13,544	13,461	13,965	13,814	13,503	12,556	10,555	9,312	8,225	7,639	8,148	8,700	9,689	9,734	9,575
Interest coverage		53.26	54.38	57.01	61.97	67.32	69.87	65.30	60.09	52.37	46.32	45.38	40.36	36.85	37.27	35.37	30.98	28.35	24.43	22.90	21.76

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $683,938K ÷ $12,842K
= 53.26

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Analyzing Ufp Industries Inc's interest coverage over the past few quarters, we observe a generally increasing trend from 2019 to 2023. The interest coverage ratio has consistently improved, reflecting the company's enhanced capacity to cover its interest payments.

In the most recent quarter, the interest coverage ratio was 53.26, indicating that the company earned 53.26 times the amount of interest expense owed. This suggests a robust ability to service its debt obligations.

Overall, the trend of increasing interest coverage ratios showcases Ufp Industries Inc's improving financial health and ability to meet its interest obligations comfortably.