UFP Technologies Inc (UFPT)

Days of sales outstanding (DSO)

		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
Receivables turnover		5.96	5.18	6.83	6.62	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
DSO	days	61.27	70.46	53.44	55.17	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

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.96
= 61.27

Days Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes a company to collect payment after making a sale. For UFP Technologies Inc, the DSO trend over the past few years shows some fluctuations.

As of December 31, 2024, the company had a DSO of 61.27 days, which suggests that it took UFP Technologies approximately 61 days on average to collect payment for its sales. This figure is relatively stable compared to the previous quarter at 70.46 days on September 30, 2024, indicating an improvement in the efficiency of the company's account receivables management.

Looking at the overall trend, DSO has varied between 53.44 days to 76.10 days over the past few quarters, showing some inconsistency in the company's collections process. It's worth noting that a lower DSO is generally preferable as it indicates faster collection of accounts receivable, which in turn improves cash flow and liquidity.

UFP Technologies Inc may benefit from further analysis and potential improvements in its credit policies, collection procedures, and customer payment terms to consistently reduce its DSO and enhance its working capital management.