UFP Technologies Inc (UFPT)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	197,791	198,228	196,447	193,872
Total current assets	US$ in thousands	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	53,250	64,100	57,934	55,048
Total current liabilities	US$ in thousands	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	16,784	21,361	20,905	18,970
Working capital turnover		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	5.42	4.64	5.31	5.37

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $397,074K ÷ ($144,633K – $58,209K)
= 4.59

The working capital turnover for UFP Technologies Inc has shown fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in using working capital resources.

Looking at the trend, the working capital turnover ratio has generally been in the range of 2.7 to 5.9 over the past five years. The ratio peaked in March 2023 at 5.93, suggesting that the company effectively converted its working capital into sales during that period. However, the ratio dropped to 2.70 in September 2021, indicating a decrease in efficiency in utilizing working capital.

Overall, UFP Technologies Inc has demonstrated varying levels of efficiency in managing its working capital to generate sales revenue over the past few years. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's working capital management practices.