UFP Technologies Inc (UFPT)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	57,664	55,803	66,723	61,880	55,399	49,158	28,270	22,278	21,218	21,521	20,169	16,956	16,731	18,540	20,953	24,531	24,709	23,457	23,204	22,301
Total assets	US$ in thousands	404,136	399,810	397,992	390,782	378,192	388,319	395,051	363,346	334,132	220,686	217,286	209,180	203,204	200,664	197,219	194,213	188,758	200,338	194,965	192,663
Operating ROA		14.27%	13.96%	16.76%	15.83%	14.65%	12.66%	7.16%	6.13%	6.35%	9.75%	9.28%	8.11%	8.23%	9.24%	10.62%	12.63%	13.09%	11.71%	11.90%	11.58%

December 31, 2023 calculation

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

Operating return on assets (Operating ROA) measures a company's efficiency in generating operating income relative to its total assets. UFP Technologies Inc's Operating ROA has shown fluctuations over the past years, ranging from 6.13% to 16.76%. The company's performance peaked at 16.76% in June 2023, indicating an improvement in profitability relative to its asset base.

However, the trend has not been consistently upward, as there were periods of decline in Operating ROA. The company saw a significant drop to 6.13% in March 2022, but has since recovered and maintained relatively higher levels. This suggests that UFP Technologies Inc may have faced challenges in asset utilization and profitability in the past, but has made efforts to enhance operational efficiency.

Overall, UFP Technologies Inc's Operating ROA performance demonstrates the company's ability to efficiently convert its assets into operating income, with fluctuations reflecting varying levels of profitability and asset utilization over time.