UFP Technologies Inc (UFPT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	5,263	6,376	5,291	6,503	4,451	9,937	5,576	3,652	11,117	33,094	30,273	25,377	24,234	17,435	12,266	7,334	3,743	11,390	5,231	2,493
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.09	0.11	0.10	0.12	0.08	0.17	0.10	0.09	0.29	1.76	1.54	1.52	1.60	1.09	0.74	0.42	0.22	0.53	0.25	0.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,263K + $—K) ÷ $58,209K
= 0.09

The cash ratio for UFP Technologies Inc has been fluctuating over the periods provided. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

At the end of December 2023, the cash ratio was 0.09, indicating that the company had $0.09 in cash and cash equivalents for every $1 of current liabilities. This suggests a relatively low liquidity position.

Comparing this to previous quarters, the cash ratio has shown variability. The ratio was relatively high in the third quarter of 2021 (1.76) and has since decreased significantly. A high cash ratio could imply conservative financial management, while a decreasing ratio may signal a utilization of cash for investments or other purposes.

The cash ratio of UFP Technologies Inc seems to have experienced a significant change in a relatively short period, possibly due to changes in cash balances, short-term debt levels, or overall business operations. It would be important to further investigate the reasons behind these fluctuations to assess the company's liquidity position accurately.