UFP Technologies Inc (UFPT)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 398,082 | 374,929 | 206,246 | 178,831 | 197,707 |
| Total current assets | US$ in thousands | 144,633 | 116,346 | 87,320 | 71,864 | 53,250 |
| Total current liabilities | US$ in thousands | 58,209 | 55,961 | 38,783 | 15,137 | 16,784 |
| Working capital turnover | 4.61 | 6.21 | 4.25 | 3.15 | 5.42 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $398,082K ÷ ($144,633K – $58,209K)
= 4.61
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in using its current assets.
In the case of UFP Technologies Inc, the working capital turnover has fluctuated over the past five years. In 2023, the working capital turnover ratio was 4.61, a decrease from the previous year's ratio of 6.21. This suggests that the company was slightly less efficient in using its working capital to generate sales revenue in 2023 compared to 2022.
Looking further back, the trend indicates variability in the company's management of working capital efficiency. In 2021, the working capital turnover was 4.25, lower than the previous year, indicating a decrease in efficiency. However, in 2020, the ratio improved to 3.15, reflecting a more efficient use of working capital to generate sales revenue.
Overall, the fluctuating trend in UFP Technologies Inc's working capital turnover ratio suggests varying levels of efficiency in managing its working capital over the past five years. Further analysis and comparison with industry benchmarks may provide more insights into the company's working capital management performance.
Peer comparison
Dec 31, 2023