Ufp Industries Inc (UFPI)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 524,392 553,920 584,186 618,649 646,534 691,086 760,798 852,867 950,184 976,642 907,723 859,092 737,554 633,627 572,103 427,527 348,672 310,913 274,779 256,657
Interest expense (ttm) US$ in thousands 12,709 12,503 12,752 12,860 12,842 13,295 16,472 21,763 23,555 21,796 19,218 14,551 12,792 13,874 12,556 10,555 9,312 7,354 6,768 7,277
Interest coverage 41.26 44.30 45.81 48.11 50.35 51.98 46.19 39.19 40.34 44.81 47.23 59.04 57.66 45.67 45.56 40.50 37.44 42.28 40.60 35.27

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $524,392K ÷ $12,709K
= 41.26

Based on the provided data, the interest coverage ratio of Ufp Industries Inc shows a fluctuating trend over the periods from March 31, 2020, to December 31, 2024. The interest coverage ratio represents the company's ability to meet its interest obligations on its outstanding debt, with a higher ratio indicating a stronger ability to cover interest expenses.

The interest coverage ratio for Ufp Industries Inc has been generally healthy, with values ranging from 35.27 to 59.04 during the period under review. The ratio experienced an overall increasing trend from March 31, 2020, to March 31, 2022, peaking at 59.04 in the first quarter of 2022. This indicates that the company's earnings were more than sufficient to cover its interest expenses during this period.

However, from June 30, 2022, to December 31, 2024, the interest coverage ratio showed a slight decline, dropping to a range between 41.26 and 50.35. Despite this downward trend, the ratio remained above 40 during these quarters, indicating that the company continued to generate enough earnings to cover its interest payments comfortably.

Overall, the interest coverage ratio of Ufp Industries Inc demonstrates a generally stable financial position with strong interest coverage capabilities throughout the period analyzed, suggesting that the company has been effectively managing its interest expenses in relation to its earnings.