UFP Technologies Inc (UFPT)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	13,450	16,356	16,728	11,372	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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.18	0.21	0.32	0.22	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($13,450K + $—K) ÷ $76,295K
= 0.18

The cash ratio of UFP Technologies Inc has displayed some fluctuations over the period under consideration. It increased from 0.42 as of March 31, 2020, to a peak of 1.76 as of September 30, 2021, indicating a strong ability to cover its current liabilities with cash on hand during that period. However, the ratio saw a significant decline in the subsequent quarters dropping to 0.29 as of December 31, 2021, and continued to decrease to 0.08 as of December 31, 2022. This downward trend suggests a decrease in the company's cash holdings relative to its current liabilities, potentially signaling liquidity challenges or changes in cash management strategies. The ratio slightly improved in the following periods but remained relatively low, ranging from 0.09 to 0.32 until December 31, 2024. Further analysis of the company's cash management practices and liquidity position would be warranted to better understand these fluctuations in the cash ratio.