UFP Technologies Inc (UFPT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	57,664	55,400	21,218	16,732	24,708
Total assets	US$ in thousands	404,136	378,192	334,132	203,204	188,758
Operating ROA		14.27%	14.65%	6.35%	8.23%	13.09%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $57,664K ÷ $404,136K
= 14.27%

From the data provided, we observe fluctuations in UFP Technologies Inc's operating return on assets (operating ROA) over the past five years. The operating ROA was 14.27% as of December 31, 2023, which indicates that the company generated $0.1427 in operating income for every dollar of assets employed during the period.

Comparing this to the previous year, where the operating ROA stood at 14.65%, we note a slight decrease in the efficiency of asset utilization. However, the operating ROA has shown variability in performance over the period, with a low of 6.35% in 2021 and a high of 13.09% in 2019.

The trend in UFP Technologies Inc's operating ROA suggests that the company's ability to generate operating income from its assets has varied. This variability may be attributed to changes in operational efficiency, asset management strategies, market conditions, or other factors impacting the company's profitability and asset utilization.

Overall, while the operating ROA provides insight into UFP Technologies Inc's operational efficiency and asset productivity, further analysis and comparison with industry benchmarks would be valuable in assessing the company's performance in context.