UFP Technologies Inc (UFPT)

Current 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
Total current assets	US$ in thousands	194,945	201,007	162,161	150,539	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
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
Current ratio		2.56	2.57	3.13	2.87	2.48	2.48	2.59	2.43	2.08	2.27	2.35	2.54	2.25	4.86	4.40	4.68	4.75	4.27	3.86	3.42

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $194,945K ÷ $76,295K
= 2.56

UFP Technologies Inc's current ratio has shown a fluctuating trend over the reported periods, ranging from a high of 4.86 in September 30, 2021 to a low of 2.08 in December 31, 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a better ability to meet short-term obligations.

The current ratio peaked in December 31, 2021 at 4.75, demonstrating a strong liquidity position at that time. However, there was a significant decline in the current ratio in the subsequent periods, with a gradual decrease to 2.56 by December 31, 2024. This declining trend may suggest potential challenges in managing short-term obligations with current assets.

It is important to note that although the current ratio has shown fluctuations, it has generally remained above 2 throughout the reported periods, indicating that UFP Technologies Inc has had sufficient current assets to cover its short-term liabilities. However, a decreasing trend in the current ratio should be carefully monitored as it could indicate liquidity challenges or inefficiencies in managing working capital.