UFP Technologies Inc (UFPT)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	80,897	57,664	55,400	21,218	16,732
Total assets	US$ in thousands	628,995	404,136	378,192	334,132	203,204
Operating ROA		12.86%	14.27%	14.65%	6.35%	8.23%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $80,897K ÷ $628,995K
= 12.86%

To analyze UFP Technologies Inc's operating return on assets (Operating ROA) over the period from December 31, 2020, to December 31, 2024, we observe fluctuations in the ratio:

1. In 2020, the Operating ROA was 8.23%. This indicates that for every dollar of assets the company had, it generated a return of 8.23% from its operations.

2. In 2021, the Operating ROA decreased to 6.35%. The decline suggests a lower efficiency in generating operating income from its assets compared to the previous year.

3. However, there was a significant improvement in 2022, with the Operating ROA surging to 14.65%. This remarkable increase indicates enhanced operational performance in utilizing its assets to generate earnings.

4. The trend continued in 2023, with the Operating ROA remaining high at 14.27%. This consistent performance implies sustained efficiency in generating operating income relative to its asset base.

5. By the end of 2024, the Operating ROA slightly decreased to 12.86%. Despite the decline, the ratio remains relatively healthy, indicating that UFP Technologies Inc is still effectively utilizing its assets to generate operating returns.

Overall, the trend in UFP Technologies Inc's Operating ROA shows fluctuations, with periods of improvement and slight declines. This analysis suggests that the company has been reasonably effective in managing its assets to generate operational income, though variations in performance should be evaluated further to understand the underlying factors influencing the ratio changes.