UFP Technologies Inc (UFPT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 58,981 | 44,924 | 41,789 | 15,886 | 13,369 |
| Total assets | US$ in thousands | 628,995 | 404,136 | 378,192 | 334,132 | 203,204 |
| ROA | 9.38% | 11.12% | 11.05% | 4.75% | 6.58% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $58,981K ÷ $628,995K
= 9.38%
UFP Technologies Inc's return on assets (ROA) has displayed fluctuations over the years. The ROA decreased from 6.58% as of December 31, 2020, to 4.75% as of December 31, 2021, indicating a decline in the company's ability to generate profit from its assets during that period. However, the ROA showed a significant recovery in the subsequent years, reaching 11.05% as of December 31, 2022, 11.12% as of December 31, 2023, and then slightly decreasing to 9.38% as of December 31, 2024.
The increase in ROA from 2022 to 2023 suggests that the company effectively utilized its assets to generate higher profits during those years. The subsequent slight decrease in ROA in 2024 could be attributed to various factors such as changes in the company's asset base, profitability, or operational efficiency.
Overall, UFP Technologies Inc's ROA performance indicates variability in its asset utilization efficiency and profitability over the years. It would be essential to further investigate the underlying reasons for these fluctuations to assess the company's overall financial health and operational effectiveness.
Peer comparison
Dec 31, 2024