UFP Technologies Inc (UFPT)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	505,715	398,082	374,929	206,246	178,831
Receivables	US$ in thousands	84,677	64,449	55,117	39,384	26,428
Receivables turnover		5.97	6.18	6.80	5.24	6.77

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $505,715K ÷ $84,677K
= 5.97

The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers. Looking at the trend for UFP Technologies Inc over the past five years, we observe variations in the receivables turnover ratio.

In December 2020, the receivables turnover ratio was 6.77 times, indicating that the company collected its outstanding receivables approximately 6.77 times during that period. This suggests a relatively efficient collection process.

However, in December 2021, there was a decrease in the receivables turnover ratio to 5.24 times, which may suggest a slowdown in the collection of receivables compared to the previous year.

Subsequently, in December 2022, there was a noticeable improvement in the receivables turnover ratio to 6.80 times, indicating that the company was able to collect outstanding receivables more frequently than in the previous year.

In December 2023, there was a slight decrease in the receivables turnover ratio to 6.18 times, but it still remained relatively high compared to the base year of 2020.

Lastly, in December 2024, the receivables turnover ratio decreased slightly further to 5.97 times, suggesting that there may have been challenges in collecting receivables efficiently during that period.

Overall, the trend in UFP Technologies Inc's receivables turnover ratio shows some fluctuations over the years, with some years demonstrating improvements in efficiency while others showing a slight decline. Monitoring the receivables turnover ratio can provide insights into the company's ability to collect outstanding receivables promptly and efficiently.