UFP Technologies Inc (UFPT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	504,413	461,841	416,527	405,191	397,074	386,813	383,088	384,042	358,074	323,180	277,782	228,683	206,351	195,161	187,703	179,327	179,009	184,116	190,075	198,959
Property, plant and equipment	US$ in thousands	70,564	70,311	63,736	61,931	62,137	60,687	59,839	59,027	58,072	56,346	66,118	63,282	56,569	52,982	53,695	53,649	53,755	54,351	55,158	56,230
Fixed asset turnover		7.15	6.57	6.54	6.54	6.39	6.37	6.40	6.51	6.17	5.74	4.20	3.61	3.65	3.68	3.50	3.34	3.33	3.39	3.45	3.54

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $504,413K ÷ $70,564K
= 7.15

The fixed asset turnover ratio for UFP Technologies Inc has consistently improved over the past few years. The ratio increased from 3.54 as of March 31, 2020, to 7.15 as of December 31, 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets.

The company has been able to utilize its fixed assets more efficiently in generating sales over the period. The increasing trend in the fixed asset turnover ratio suggests that UFP Technologies Inc is effectively managing its fixed assets to drive revenue growth and potentially improve profitability.

A higher fixed asset turnover ratio is generally considered favorable, as it implies that the company is efficiently using its fixed assets to generate sales. UFP Technologies Inc's improving fixed asset turnover ratio reflects positively on its operational efficiency and indicates a potential for enhanced financial performance in the future.