UFP Technologies Inc (UFPT)

Current 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
Total current assets	US$ in thousands	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	53,250	64,100	57,934	55,048
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
Current ratio		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	3.17	3.00	2.77	2.90

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $144,633K ÷ $58,209K
= 2.48

The current ratio of UFP Technologies Inc has shown fluctuations over the past periods, ranging from a low of 2.08 to a high of 4.86. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has enough current assets to cover its current liabilities.

In recent periods, the current ratio has generally remained above 2, indicating a healthy liquidity position for UFP Technologies Inc. This means that the company has more than enough current assets to meet its short-term obligations, providing a cushion in case of any unexpected financial challenges.

However, it is worth noting that the current ratio experienced a significant spike in the third quarter of 2021, reaching highs of 4.86, which could be indicative of unusual circumstances or a temporary increase in current assets. Subsequent quarters show a gradual decline in the current ratio, suggesting a normalization of the company's liquidity position.

Overall, the trend of the current ratio for UFP Technologies Inc indicates a strong liquidity position, with the company maintaining a healthy balance between current assets and current liabilities to meet its short-term financial obligations.