UFP Technologies Inc (UFPT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,547 | 55,481 | 21,244 | 16,366 | 24,320 |
| Long-term debt | US$ in thousands | 28,000 | 51,000 | 71,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 286,091 | 237,545 | 194,446 | 176,893 | 161,991 |
| Return on total capital | 18.32% | 19.23% | 8.00% | 9.25% | 15.01% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $57,547K ÷ ($28,000K + $286,091K)
= 18.32%
UFP Technologies Inc's return on total capital has exhibited variability over the past five years. The metric stood at 18.32% in 2023, slightly lower than the 19.23% recorded in 2022. In 2021, the return on total capital was 8.00%, representing a significant decrease from the prior year. The ratio improved to 9.25% in 2020 from 15.01% in 2019. Overall, the company has demonstrated the ability to generate returns on its total capital, although fluctuations in the ratio suggest varying efficiency in utilizing both debt and equity to generate profits. Tracking this metric over time can provide insights into the company's financial performance and capital allocation strategies.
Peer comparison
Dec 31, 2023