UFP Technologies Inc (UFPT)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	505,715	398,082	374,929	206,246	178,831
Property, plant and equipment	US$ in thousands	70,564	62,137	58,072	56,569	53,755
Fixed asset turnover		7.17	6.41	6.46	3.65	3.33

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $505,715K ÷ $70,564K
= 7.17

Fixed asset turnover, a key financial ratio, measures a company's ability to generate revenue from its investment in fixed assets.

As per the data provided, UFP Technologies Inc's fixed asset turnover has displayed a positive trend over the years. The ratio increased from 3.33 in December 2020 to 7.17 in December 2024. This indicates that the company has been effectively utilizing its fixed assets to generate sales.

A higher fixed asset turnover ratio generally reflects efficient management of fixed assets and productive use of resources. UFP Technologies Inc's significant improvement in fixed asset turnover signifies that the company has been able to increase its revenue relative to the investment in its fixed assets.

This positive trend in fixed asset turnover suggests that UFP Technologies Inc has improved operational efficiency and is making better use of its fixed assets to drive business growth. It also indicates that the company may be effectively managing inventory, optimizing production processes, and enhancing overall operational performance.