UFP Technologies Inc (UFPT)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 81,086 57,547 55,481 21,244 16,366
Long-term debt US$ in thousands 176,875 28,000 51,000 71,000 0
Total stockholders’ equity US$ in thousands 342,760 286,091 237,545 194,446 176,893
Return on total capital 15.60% 18.32% 19.23% 8.00% 9.25%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $81,086K ÷ ($176,875K + $342,760K)
= 15.60%

The return on total capital of UFP Technologies Inc has shown fluctuations over the past five years. In December 2020, the return on total capital was 9.25%, and it decreased slightly to 8.00% by December 2021. However, there was a significant improvement in performance in the subsequent years, with the return on total capital reaching 19.23% in December 2022 and 18.32% in December 2023. In December 2024, the return on total capital decreased to 15.60%.

Overall, UFP Technologies Inc has demonstrated a varying performance in generating returns on its total capital over the past five years, with a notable peak in 2022 and 2023. It is essential for the company to maintain its focus on effectively utilizing its capital resources to sustain and enhance its profitability in the future.