UFP Technologies Inc (UFPT)

Payables 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
Cost of revenue (ttm) US$ in thousands 564,202 397,355 361,693 352,395 345,706 337,364 335,242 334,990 317,726 291,553 253,155 214,499 192,207 180,486 174,381 169,272 169,175 172,542 176,236 181,703
Payables US$ in thousands 24,269 26,268 22,966 23,654 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
Payables turnover 23.25 15.13 15.75 14.90 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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $564,202K ÷ $24,269K
= 23.25

The payables turnover ratio of UFP Technologies Inc has exhibited fluctuations over the periods indicated. The ratio indicates how many times the company pays its suppliers during a specific time frame. A higher payables turnover ratio typically suggests that the company is efficiently managing its payables and settling its dues more frequently.

Based on the data provided:
- The payables turnover ratio was on an increasing trend from March 2020 to December 2020, highlighting an improvement in the company's ability to pay off its obligations quickly.
- However, the ratio witnessed a decline in the following periods, particularly from March 2021 to June 2021, indicating a potential slowdown in the payment cycle.
- The ratio further fluctuated throughout 2022 and 2023, showing a mix of increases and decreases.
- In the later part of 2024, the ratio started to stabilize around the range of 15 to 23 times, implying a moderate level of payables turnover.

The trend in the payables turnover ratio suggests variations in the company's payment practices and relationship with its suppliers. It is essential for stakeholders to monitor these fluctuations to assess the company's liquidity management and its ability to maintain positive supplier relationships.