UFP Technologies Inc (UFPT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.93 | 4.83 | 5.32 | 5.91 | 5.93 | 5.42 | 5.01 | 4.95 | 5.75 | 8.33 | 8.24 | 8.46 | 9.07 | 8.85 | 8.41 | 8.98 | 9.88 | 9.47 | 9.49 | 9.23 |
| Receivables turnover | 6.16 | 6.34 | 5.98 | 6.39 | 6.50 | 5.26 | 4.80 | 4.95 | 5.24 | 6.01 | 6.01 | 5.97 | 6.77 | 6.59 | 6.97 | 6.63 | 6.90 | 6.43 | 6.40 | 6.51 |
| 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 |
| Working capital turnover | 4.59 | 4.61 | 4.56 | 5.14 | 5.93 | 4.44 | 3.84 | 3.84 | 4.25 | 2.70 | 2.81 | 2.92 | 3.16 | 3.51 | 4.01 | 4.70 | 5.42 | 4.64 | 5.31 | 5.37 |
Activity ratios provide insights into how efficiently a company is utilizing its assets and managing its operations.
1. Inventory Turnover: UFP Technologies Inc's inventory turnover ratio has been fluctuating over the periods, ranging from 4.83 to 9.88. The company's inventory turnover has shown a general increasing trend, which indicates that it is selling inventory more frequently. This may suggest effective inventory management or changes in demand patterns.
2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects its accounts receivable. UFP Technologies Inc's receivables turnover has varied between 4.80 and 6.77 over the periods. The increasing trend suggests that the company is collecting its receivables more frequently, improving its cash flow and reducing the risk of bad debts.
3. Payables Turnover: The payables turnover ratio measures how efficiently the company pays its suppliers. UFP Technologies Inc's payables turnover ratio has fluctuated significantly between 10.80 and 41.05. A higher turnover ratio indicates that the company is managing its payables effectively, potentially taking advantage of trade credit terms or negotiating better terms with suppliers.
4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently the company is utilizing its working capital to generate sales. UFP Technologies Inc's working capital turnover ratio has ranged from 2.70 to 5.93. A higher ratio suggests that the company is effectively utilizing its working capital to support its operations and generate revenue.
Overall, the analysis of UFP Technologies Inc's activity ratios indicates improvements in inventory turnover, receivables turnover, payables turnover, and working capital turnover over the periods, reflecting efficient management of assets and operations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.11 | 75.49 | 68.65 | 61.72 | 61.50 | 67.38 | 72.89 | 73.67 | 63.49 | 43.83 | 44.29 | 43.16 | 40.22 | 41.23 | 43.41 | 40.66 | 36.94 | 38.53 | 38.45 | 39.55 |
| Days of sales outstanding (DSO) | days | 59.24 | 57.53 | 61.06 | 57.16 | 56.18 | 69.43 | 76.10 | 73.71 | 69.66 | 60.70 | 60.71 | 61.10 | 53.89 | 55.39 | 52.37 | 55.07 | 52.87 | 56.77 | 57.01 | 56.05 |
| Number of days of payables | days | 23.53 | 29.16 | 27.36 | 22.29 | 22.93 | 26.16 | 33.80 | 26.66 | 20.15 | 15.28 | 17.49 | 12.89 | 8.89 | 9.62 | 11.21 | 15.14 | 9.25 | 13.68 | 11.91 | 12.29 |
Days of Inventory on Hand (DOH) measures how long it takes for UFP Technologies Inc to sell its inventory. The trend in DOH shows a fluctuating pattern, with an increase from 36.94 days in March 2020 to 75.49 days in September 2023. This indicates a potential issue with managing inventory levels efficiently, which could tie up working capital and lead to higher holding costs.
Days of Sales Outstanding (DSO) reflects the average time it takes for the company to collect payment from its customers. The trend in DSO also shows variability, peaking at 76.10 days in June 2022 and then decreasing to 57.53 days in September 2023. A lower DSO is generally more favorable as it signifies quicker cash conversion from sales, though UFP Technologies Inc could focus on further reducing this metric for improved liquidity.
Number of Days of Payables indicates the average time it takes for the company to pay its suppliers. There is a fluctuating pattern in this metric as well, with a notable decrease from 33.80 days in June 2022 to 23.53 days in December 2023. A lower number of days of payables typically suggests strong bargaining power with suppliers but could also indicate potential liquidity concerns if payments are being made too rapidly.
In summary, UFP Technologies Inc's activity ratios display varying trends over the periods analyzed, indicating potential opportunities for improvement in inventory management, accounts receivable collection, and accounts payable processes to enhance overall operational efficiency and financial performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 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 | 3.49 | 3.47 | 3.43 | 3.37 |
| Total asset turnover | 0.98 | 0.97 | 0.96 | 0.98 | 0.95 | 0.83 | 0.70 | 0.63 | 0.62 | 0.88 | 0.86 | 0.86 | 0.88 | 0.92 | 0.96 | 1.02 | 1.05 | 0.99 | 1.01 | 1.01 |
UFP Technologies Inc's long-term activity ratios provide insights into the company's efficiency in utilizing its assets to generate revenue. The fixed asset turnover ratio has shown an increasing trend over the period, indicating that the company is generating more sales relative to its investment in fixed assets. This suggests improved operational efficiency and better utilization of long-term assets to drive revenue.
On the other hand, the total asset turnover ratio has fluctuated over the period, with some quarters showing a decrease followed by an increase. Although the ratio has been relatively stable, it indicates that the company is generating revenue at a moderate level compared to its total assets. This could be due to the nature of the industry or specific business strategies employed by UFP Technologies Inc.
Overall, the improvement in fixed asset turnover suggests effective management of long-term assets, while the stability of the total asset turnover ratio indicates a consistent approach to generating sales with available assets. Investors and stakeholders may view these ratios positively, as they reflect operational efficiency and asset utilization within the company.