UFP Technologies Inc (UFPT)

Days of inventory on hand (DOH)

		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
Inventory turnover		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	9.88	9.47	9.49	9.23
DOH	days	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	36.94	38.53	38.45	39.55

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.93
= 74.11

The Days of Inventory on Hand (DOH) for UFP Technologies Inc has fluctuated over the past few years. In recent quarters, the company has shown an increasing trend in DOH, indicating that inventory is taking longer to sell or turnover. For example, in the most recent quarter of Dec 31, 2023, the DOH was 74.11 days, which is higher compared to the same quarter in the previous year with 61.50 days.

This rise in DOH can suggest potential concerns such as overstocking, slow sales, or ineffective inventory management. A high DOH value means that the company is holding onto inventory for a longer period, tying up capital and potentially increasing storage costs. On the other hand, a low DOH value indicates efficient inventory turnover and better liquidity.

Management should closely monitor and analyze the reasons behind the increasing DOH trend to optimize inventory levels, ensure a balance between supply and demand, and enhance overall operational efficiency. It is essential for UFP Technologies Inc to address these inventory management challenges to maintain profitability and competitiveness in the market.