UFP Technologies Inc (UFPT)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 112,225 | 90,260 | 51,114 | 44,684 | 53,959 |
| Revenue | US$ in thousands | 398,082 | 374,929 | 206,246 | 178,831 | 197,707 |
| Gross profit margin | 28.19% | 24.07% | 24.78% | 24.99% | 27.29% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $112,225K ÷ $398,082K
= 28.19%
The gross profit margin of UFP Technologies Inc has shown fluctuations over the past five years. In 2019, the company had the highest gross profit margin at 27.29%, which then decreased to 24.99% in 2020 and further to 24.78% in 2021. Subsequently, there was an improvement in the gross profit margin in 2022 to 24.07%, followed by a significant increase to 28.19% in 2023.
The rising trend in gross profit margin from 2022 to 2023 indicates an improvement in the company's ability to generate profits from its core operations. This could suggest effective cost management, pricing strategies, or possibly an increase in sales of higher-margin products.
However, it would be advisable to closely monitor the gross profit margin in the upcoming periods to ensure that this positive trend is sustainable and not a one-time occurrence. Additionally, comparing the gross profit margin with industry peers would provide more insights into UFP Technologies Inc's competitive position and operational efficiency.
Peer comparison
Dec 31, 2023