UFP Technologies Inc (UFPT)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	176,875	28,000	51,000	71,000	0
Total assets	US$ in thousands	628,995	404,136	378,192	334,132	203,204
Debt-to-assets ratio		0.28	0.07	0.13	0.21	0.00

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $176,875K ÷ $628,995K
= 0.28

Based on the historical data provided for UFP Technologies Inc, the debt-to-assets ratio has exhibited variability over the years.

As of December 31, 2020, the company had a debt-to-assets ratio of 0.00, indicating that there was no debt relative to its total assets at that point in time. This could signal a strong financial position with minimal reliance on debt financing.

By December 31, 2021, the debt-to-assets ratio increased to 0.21, suggesting that the company took on some debt compared to the previous year. This could indicate a strategic decision to leverage debt for growth or investment opportunities.

In the following years, the ratio showed fluctuations, dropping to 0.13 by December 31, 2022, and further decreasing to 0.07 by December 31, 2023. These declines may suggest that the company was able to reduce its debt levels or increase its asset base during these periods, improving its financial stability.

However, by December 31, 2024, the debt-to-assets ratio spiked to 0.28, indicating a significant increase in debt relative to assets. This could raise concerns about the company's liquidity position or its ability to service its debt obligations efficiently.

In conclusion, UFP Technologies Inc's debt-to-assets ratio has demonstrated fluctuations over the years, with periods of both increase and decrease. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and risk profile.