UFP Technologies Inc (UFPT)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.60 | 74.10 | 61.48 | 63.49 | 40.22 |
| Days of sales outstanding (DSO) | days | 61.12 | 59.09 | 53.66 | 69.70 | 53.94 |
| Number of days of payables | days | 15.69 | 23.53 | 22.92 | 20.15 | 8.89 |
| Cash conversion cycle | days | 102.03 | 109.67 | 92.21 | 113.04 | 85.27 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 56.60 + 61.12 – 15.69
= 102.03
The cash conversion cycle of UFP Technologies Inc has shown fluctuations over the past five years. Starting at 85.27 days in December 2020, it increased to 113.04 days in December 2021, reflecting a prolonged period required to convert investments in inventory into cash receipts from sales. Subsequently, there was a decrease to 92.21 days by December 2022, indicating improvement in efficiency. However, by December 2023, the cycle increased again to 109.67 days, suggesting potential challenges in managing working capital effectively. Finally, by December 2024, the cycle decreased slightly to 102.03 days, but still remains elevated compared to its initial level in 2020. Overall, UFP Technologies Inc should focus on streamlining its operations to reduce the cash conversion cycle and optimize its working capital management.
Peer comparison
Dec 31, 2024