UFP Technologies Inc (UFPT)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 6.45 4.48 4.64 4.77 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
Receivables turnover 5.96 5.18 6.83 6.62 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
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
Working capital turnover 4.25 3.77 3.77 4.13 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

Activity ratios reflect how efficiently a company manages its assets to generate revenues. Let's analyze the activity ratios of UFP Technologies Inc based on the provided data:

1. Inventory Turnover: This ratio indicates how many times a company's inventory is sold and replaced over a period. UFP Technologies Inc's inventory turnover has ranged from 4.48 to 9.07 over the past years. A decreasing trend is observed from 2023 to 2024, which can signal potential inventory management issues or changing demand patterns.

2. Receivables Turnover: This ratio measures how efficiently a company collects cash from its credit sales. UFP Technologies Inc's receivables turnover has varied between 4.80 and 6.83. The data shows a slight fluctuation, with some improvements in 2022 compared to 2021. A higher turnover ratio is generally favorable as it indicates better credit management.

3. Payables Turnover: This ratio reflects how quickly a company pays its suppliers. UFP Technologies Inc's payables turnover has fluctuated between 10.80 and 41.05. The decreasing trend from 2020 to 2022 followed by some stabilization suggests changes in the company's payment terms with suppliers.

4. Working Capital Turnover: This ratio measures how efficiently a company utilizes its working capital to generate sales. UFP Technologies Inc's working capital turnover has been between 2.70 and 5.93. The increasing trend observed from 2020 to 2022 indicates improved efficiency in using working capital to support revenue generation.

In conclusion, UFP Technologies Inc's activity ratios show varying trends over the years. Monitoring these ratios can provide insights into the company's operational efficiency, inventory management, working capital utilization, and relationships with customers and suppliers.

Average number of days

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
Days of inventory on hand (DOH) days 56.63 81.47 78.69 76.54 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
Days of sales outstanding (DSO) days 61.27 70.46 53.44 55.17 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
Number of days of payables days 15.70 24.13 23.18 24.50 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

Based on the provided data for UFP Technologies Inc, we can analyze the following activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand ranged from around 40 to 80 days over the specified period.
- The company's inventory holding period increased notably in the latter part of the period, indicating a higher level of inventory relative to sales.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding ranged from approximately 50 to 70 days during the period under consideration.
- There was some fluctuation in the DSO over time, with higher values observed in 2021 and 2022, suggesting a longer time taken to collect receivables.

3. Number of Days of Payables:
- The number of days of payables varied from around 10 to 35 days across the period.
- The payables period showed some fluctuation, with an increasing trend noted in the latter part of the period.

Overall, the analysis of these activity ratios indicates that UFP Technologies Inc experienced changes in its inventory management, accounts receivable collection, and payables practices over the specified time frame. The company may need to focus on optimizing its inventory levels, improving its accounts receivable collection efficiency, and managing its payables effectively to enhance operational efficiency and financial performance.

Long-term

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
Fixed asset turnover 7.15 6.57 6.54 6.54 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
Total asset turnover 0.80 0.72 0.99 0.99 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

The fixed asset turnover of UFP Technologies Inc has shown an increasing trend from 3.54 in March 2020 to 7.15 in December 2024. This indicates that the company is generating more sales relative to its investment in fixed assets over the years, which is a positive sign of operational efficiency and asset utilization.

On the other hand, the total asset turnover ratio fluctuated over the same period, but generally increased slightly from 1.02 in March 2020 to 0.80 in December 2024. The declining trend in the total asset turnover ratio implies that the company is generating fewer sales relative to its total assets, which could indicate inefficiency in asset utilization or a change in the company's business model.

Overall, the increasing trend in the fixed asset turnover ratio suggests that UFP Technologies Inc has been effectively utilizing its fixed assets to generate sales, while the fluctuating total asset turnover ratio warrants further investigation into the underlying factors affecting the company's overall asset turnover efficiency.