UFP Technologies Inc (UFPT)

Days of inventory on hand (DOH)

		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
Inventory turnover		6.45	4.48	4.64	4.77	4.93	4.83	5.32	5.91	5.93	5.42	5.01	4.95	5.75	8.33	8.24	8.46	9.07	8.85	8.41	8.98
DOH	days	56.63	81.47	78.69	76.54	74.11	75.49	68.65	61.72	61.50	67.38	72.89	73.67	63.49	43.83	44.29	43.16	40.22	41.23	43.41	40.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.45
= 56.63

The days of inventory on hand (DOH) for UFP Technologies Inc have shown some fluctuations over the past few years. From March 31, 2020 to December 31, 2021, the company managed to maintain its DOH relatively stable, with figures ranging between approximately 40 to 63 days. However, there was a noticeable increase in DOH by the end of December 2021, reaching 63.49 days.

Subsequently, from March 31, 2022 to December 31, 2024, the DOH continued to increase significantly, peaking at 81.47 days on September 30, 2024. This suggests that the company is taking longer to sell its inventory, which could indicate potential inefficiencies in inventory management, overstocking, slowing sales, or changes in customer demand.

It would be advisable for UFP Technologies Inc to closely monitor its inventory levels and sales performance to optimize inventory turnover and prevent excessive holding costs associated with maintaining high levels of inventory for extended periods. Further analysis and strategic adjustments may be necessary to improve inventory management efficiency and overall operational performance.