UFP Technologies Inc (UFPT)

Payables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	345,706	337,364	335,242	334,990	317,726	291,553	253,155	214,499	192,207	180,486	174,381	169,272	169,175	172,542	176,236	181,703	180,572	182,061	180,723	179,365
Payables	US$ in thousands	22,286	26,948	25,125	20,454	19,961	20,899	23,443	15,668	10,611	7,556	8,355	5,977	4,121	4,547	5,415	7,535	4,577	6,825	5,895	6,037
Payables turnover		15.51	12.52	13.34	16.38	15.92	13.95	10.80	13.69	18.11	23.89	20.87	28.32	41.05	37.95	32.55	24.11	39.45	26.68	30.66	29.71

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $345,706K ÷ $22,286K
= 15.51

The payables turnover ratio for UFP Technologies Inc has fluctuated over the past several quarters, indicating varying efficiencies in managing its accounts payable. The ratio has generally been high, ranging from a low of 10.80 to a high of 41.05. This suggests that the company is able to pay off its suppliers relatively quickly, which may reflect efficient cash management or favorable payment terms.

The highest payables turnover ratio was observed in December 2020, indicating that the company paid off its suppliers more than 40 times during that period. This could signify strong supplier relationships or strict cash flow management policies. On the other hand, the lowest ratio of 10.80 in June 2022 may indicate a slower payment cycle during that quarter.

Overall, the trend in payables turnover suggests that UFP Technologies Inc has been effectively managing its trade payables, with some periods showing higher efficiency in payments to suppliers compared to others. Further analysis of the underlying reasons for these fluctuations in the payables turnover ratio would provide additional insights into the company's working capital management practices.