UFP Technologies Inc (UFPT)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	504,413	461,841	416,527	405,191	397,074	386,813	383,088	384,042	358,074	323,180	277,782	228,683	206,351	195,161	187,703	179,327	179,009	184,116	190,075	198,959
Total current assets	US$ in thousands	194,945	201,007	162,161	150,539	144,633	140,467	137,071	126,916	116,346	130,246	125,699	98,440	87,320	91,133	86,466	78,041	71,864	68,563	63,915	59,775
Total current liabilities	US$ in thousands	76,295	78,347	51,787	52,436	58,209	56,588	52,993	52,192	55,961	57,400	53,382	38,824	38,783	18,760	19,639	16,668	15,137	16,063	16,565	17,462
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $504,413K ÷ ($194,945K – $76,295K)
= 4.25

The working capital turnover ratio for UFP Technologies Inc has shown fluctuations over the analyzed period. It measures the efficiency with which the company utilizes its working capital to generate sales. A higher ratio indicates better efficiency in managing working capital.

The trend for UFP Technologies Inc's working capital turnover ratio shows a general decline from 4.70 in March 2020 to 4.25 in December 2021 before experiencing an increase to 5.93 in December 2022. Subsequently, the ratio decreased to 4.59 by December 2023 and fluctuated between 3.77 and 4.25 up to December 2024.

The decline in the working capital turnover ratio may suggest inefficiencies in managing working capital to support sales generation. However, the notable increase in December 2022 indicates improvement in this aspect. Further analysis is required to understand the factors driving these fluctuations and to ascertain the company's overall working capital management effectiveness in supporting its operations.