UFP Technologies Inc (UFPT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 564,450 | 345,736 | 317,855 | 192,216 | 169,182 |
| Inventory | US$ in thousands | 87,536 | 70,191 | 53,536 | 33,436 | 18,642 |
| Inventory turnover | 6.45 | 4.93 | 5.94 | 5.75 | 9.08 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $564,450K ÷ $87,536K
= 6.45
The inventory turnover ratio for UFP Technologies Inc has shown some fluctuations over the past five years. In December 2020, the inventory turnover ratio was 9.08, indicating that the company was able to sell and replace its inventory approximately 9 times during that year. However, by December 2023, this ratio had decreased to 4.93, suggesting a slower rate of inventory turnover.
In the recent years, the inventory turnover ratio has shown signs of improvement. By December 2024, the ratio had increased to 6.45, indicating that the company was able to sell and replace its inventory more efficiently compared to the previous year. Despite this improvement, the ratio is still lower than the initial figure in 2020, signaling that UFP Technologies Inc may still have room for further optimization in managing its inventory levels.
Overall, the trend in inventory turnover ratios for UFP Technologies Inc reflects varying levels of efficiency in managing its inventory over the analyzed period. It would be beneficial for the company to continue monitoring and improving its inventory turnover to enhance operational efficiency and optimize working capital management.
Peer comparison
Dec 31, 2024