UFP Technologies Inc (UFPT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 13,450 | 5,263 | 4,451 | 11,117 | 24,234 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 84,677 | 64,449 | 55,117 | 39,384 | 26,428 |
| Total current liabilities | US$ in thousands | 76,295 | 58,209 | 55,961 | 38,783 | 15,137 |
| Quick ratio | 1.29 | 1.20 | 1.06 | 1.30 | 3.35 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($13,450K
+ $—K
+ $84,677K)
÷ $76,295K
= 1.29
The quick ratio of UFP Technologies Inc has witnessed a decline over the years, indicating a potential weakening liquidity position. As of December 31, 2020, the quick ratio stood at a healthy 3.35, suggesting the company had more than sufficient liquid assets to cover its current liabilities. However, by December 31, 2024, the quick ratio had dropped to 1.29, indicating a decrease in the company's ability to quickly meet its short-term obligations using its most liquid assets. Despite the decrease, the quick ratio of 1.29 as of December 31, 2024, still suggests that UFP Technologies Inc has an acceptable level of liquidity to cover its short-term liabilities. Monitoring this ratio over time will be crucial to assess the company's evolving liquidity position and its ability to meet its financial obligations promptly.
Peer comparison
Dec 31, 2024