UFP Technologies Inc (UFPT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	398,082	374,929	206,246	178,831	197,707
Property, plant and equipment	US$ in thousands	62,137	58,072	56,569	53,755	56,739
Fixed asset turnover		6.41	6.46	3.65	3.33	3.48

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $398,082K ÷ $62,137K
= 6.41

The fixed asset turnover of UFP Technologies Inc has been fluctuating over the past five years. In 2023 and 2022, the company achieved high fixed asset turnover ratios of 6.41 and 6.46, respectively, indicating that the company generated $6.41 and $6.46 in revenue for every dollar invested in fixed assets. This suggests efficient utilization of fixed assets to generate sales.

In contrast, the fixed asset turnover ratios were lower in 2021, 2020, and 2019, at 3.65, 3.33, and 3.48, respectively. While still demonstrating the ability to generate revenue from fixed assets, these lower ratios suggest a decrease in efficiency compared to the more recent years.

Overall, UFP Technologies Inc has shown variability in its fixed asset turnover ratio, with some years performing significantly better than others. It is important for the company to maintain a consistently high fixed asset turnover to maximize the return on its investment in fixed assets and ensure efficient utilization of resources.