UFP Technologies Inc (UFPT)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.16	6.34	5.98	6.39	6.50	5.26	4.80	4.95	5.24	6.01	6.01	5.97	6.77	6.59	6.97	6.63	6.90	6.43	6.40	6.51
DSO	days	59.24	57.53	61.06	57.16	56.18	69.43	76.10	73.71	69.66	60.70	60.71	61.10	53.89	55.39	52.37	55.07	52.87	56.77	57.01	56.05

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.16
= 59.24

The days of sales outstanding (DSO) for UFP Technologies Inc have shown some fluctuations over the past five years, indicating varying efficiency in collecting accounts receivable.

The DSO metric measures how long it takes a company to collect payment from its customers after making a sale. A lower DSO suggests quicker collection of receivables, which is generally favorable as it indicates efficient cash flow management.

Looking at the trend, we observe that the DSO has ranged from a low of 52.37 days to a high of 76.10 days over the past five years. In more recent quarters, the DSO has generally been in the range of 55-60 days, which may indicate improvement in the company's accounts receivable collection efficiency.

However, there have been some spikes in DSO, particularly in the quarters ending September 2022 and June 2022, where the DSO exceeded 70 days. These spikes could suggest potential challenges in receivables management during those periods.

Overall, UFP Technologies Inc should continue to monitor its DSO closely and implement strategies to streamline its accounts receivable processes to ensure timely collections and healthy cash flow management.