UFP Technologies Inc (UFPT)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	44,924	41,778	49,624	46,670	41,789	36,546	20,795	16,581	15,886	16,839	16,038	13,641	13,369	14,974	17,627	19,907	19,750	18,383	16,876	16,268
Total stockholders’ equity	US$ in thousands	286,091	272,383	260,285	246,484	237,545	226,159	207,290	199,078	194,446	190,753	186,314	180,819	176,893	172,439	169,212	166,275	161,991	155,889	149,654	144,499
ROE		15.70%	15.34%	19.07%	18.93%	17.59%	16.16%	10.03%	8.33%	8.17%	8.83%	8.61%	7.54%	7.56%	8.68%	10.42%	11.97%	12.19%	11.79%	11.28%	11.26%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $44,924K ÷ $286,091K
= 15.70%

Based on the ROE data provided for UFP Technologies Inc over the past few years, we can observe fluctuations in the return on equity metric. The ROE has shown a positive trend from 2019 to 2023, with the ROE ranging from 11.26% to 19.07%. The company has generally maintained a healthy ROE above 10% during this period, indicating that UFP Technologies is effectively generating profit relative to shareholders' equity.

The ROE peaked at 19.07% in June 2023 and then slightly decreased to 15.70% by the end of December 2023. This indicates that the company's profitability relative to its shareholder equity was higher in mid-2023 than at the end of the year. The ROE in December 2023, however, remained above the levels seen in previous quarters, indicating continued strong performance in generating profits from the shareholders' investments.

Overall, the trend in UFP Technologies Inc's ROE demonstrates effective management of shareholder equity to generate returns, with fluctuations reflecting changes in the company's profitability over time. Investors and stakeholders may use this information to assess the company's ability to generate profits relative to the amount of equity invested in the business.