UFP Technologies Inc (UFPT)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	74.10	61.48	63.49	40.22	36.94
Days of sales outstanding (DSO)	days	59.09	53.66	69.70	53.94	52.89
Number of days of payables	days	23.53	22.92	20.15	8.89	9.25
Cash conversion cycle	days	109.67	92.21	113.04	85.27	80.58

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 74.10 + 59.09 – 23.53
= 109.67

The cash conversion cycle of UFP Technologies Inc has shown fluctuations over the past five years.

In 2023, the cash conversion cycle increased to 109.67 days from 92.21 days in 2022. This indicates that the company took longer to convert its investments in inventory and other resources into cash during the year.

In 2022, there was a decrease in the cash conversion cycle to 92.21 days compared to 113.04 days in 2021. This improvement suggests that the company managed its working capital more efficiently, resulting in a quicker conversion of resources into cash.

In 2021, there was a slight increase in the cash conversion cycle to 113.04 days from 85.27 days in 2020. This could indicate that the company faced challenges in managing its working capital efficiently during that period.

In 2020, the cash conversion cycle was 85.27 days, which was lower than in 2019 when it stood at 80.58 days. This indicates that the company was efficient in converting its investments in resources into cash in 2020 compared to the previous year.

Overall, the trend in the cash conversion cycle for UFP Technologies Inc has been somewhat variable over the last five years, with fluctuations observed in the company's ability to efficiently convert investments in resources into cash. Monitoring and managing the cash conversion cycle effectively is crucial for optimizing the company's working capital and overall financial performance.