UFP Technologies Inc (UFPT)
Working capital 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 |
| Total current assets | US$ in thousands | 194,945 | 144,633 | 116,346 | 87,320 | 71,864 |
| Total current liabilities | US$ in thousands | 76,295 | 58,209 | 55,961 | 38,783 | 15,137 |
| Working capital turnover | 4.26 | 4.61 | 6.21 | 4.25 | 3.15 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $505,715K ÷ ($194,945K – $76,295K)
= 4.26
The working capital turnover of UFP Technologies Inc has shown a positive trend over the period analyzed. The ratio has increased steadily from 3.15 in December 31, 2020, to 4.25 in December 31, 2021, further improving to 6.21 by December 31, 2022. However, in the subsequent years, there was a slight decline in the ratio with figures of 4.61 in December 31, 2023, and 4.26 in December 31, 2024.
The working capital turnover ratio indicates the efficiency of UFP Technologies Inc in utilizing its working capital to generate sales. A higher turnover ratio generally suggests that the company is effectively using its working capital to support revenue generation. Despite the minor drop in recent years, the overall trend indicates that UFP Technologies Inc has been managing its working capital efficiently and effectively. Further analysis of the company's financial performance and other related factors would be needed to gain a deeper understanding of the reasons behind the fluctuations in the working capital turnover ratio.
Peer comparison
Dec 31, 2024