UFP Technologies Inc (UFPT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	345,736	317,855	192,216	169,182	180,573
Payables	US$ in thousands	22,286	19,961	10,611	4,121	4,577
Payables turnover		15.51	15.92	18.11	41.05	39.45

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $345,736K ÷ $22,286K
= 15.51

The payables turnover ratio of UFP Technologies Inc has shown a decreasing trend over the last five fiscal years. The ratio decreased from 39.45 in 2019 to 15.51 in 2023. This indicates that the company took longer to pay its suppliers in 2023 compared to 2019. A decreasing payables turnover ratio could suggest a weakening ability to efficiently manage its accounts payables or negotiate favorable credit terms with suppliers. It is essential for the company to closely monitor and manage its payables turnover to ensure effective working capital management and maintain positive relationships with suppliers.