UFP Technologies Inc (UFPT)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.93	5.94	5.75	9.08	9.88
DOH	days	74.10	61.48	63.49	40.22	36.94

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.93
= 74.10

The days of inventory on hand (DOH) for UFP Technologies Inc has exhibited some fluctuations over the past five years.

In 2023, the company had an inventory on hand for approximately 74.10 days, showing an increase from the previous year's 61.48 days. This upward trend in DOH could suggest that the company is holding onto its inventory for a longer period, which may indicate possible inefficiencies in inventory management or slower inventory turnover.

Comparing 2022 to 2021, there was a slight decrease in DOH from 63.49 days to 61.48 days. This reduction may imply that the company made improvements in managing its inventory levels or increased the efficiency of its operations.

The most significant change occurred between 2020 and 2021, with DOH jumping from 40.22 days to 63.49 days. This substantial increase could be a red flag indicating that the company had excess inventory or faced challenges in selling its products efficiently.

Furthermore, the trend from 2019 to 2020 demonstrated a consistent decrease in DOH, from 36.94 days to 40.22 days. This improvement suggests that the company was managing its inventory levels better, resulting in faster inventory turnover during that period.

Overall, UFP Technologies Inc's DOH analysis reveals varying levels of efficiency in managing its inventory over the five-year period, with notable fluctuations that may warrant further investigation into its inventory management practices.