UFP Technologies Inc (UFPT)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	28,000	39,000	53,000	56,000	51,000	67,000	96,000	91,000	71,000	—	—	—	0	—	—	—	—	12,143	13,857	19,286
Total assets	US$ in thousands	404,136	399,810	397,992	390,782	378,192	388,319	395,051	363,346	334,132	220,686	217,286	209,180	203,204	200,664	197,219	194,213	188,758	200,338	194,965	192,663
Debt-to-assets ratio		0.07	0.10	0.13	0.14	0.13	0.17	0.24	0.25	0.21	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.06	0.07	0.10

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $28,000K ÷ $404,136K
= 0.07

The debt-to-assets ratio for UFP Technologies Inc has shown fluctuations over the past few quarters. The ratio was relatively low at the end of December 2023, indicating that the company financed only 7% of its assets with debt. This suggests a lower financial risk and a stronger financial position. However, the ratio has been increasing from the previous quarters, with values ranging between 10% to 25%, which may indicate higher reliance on debt to finance assets.

The sudden drop to 0% in debt-to-assets ratio in the third and fourth quarters of 2021 suggests a period where the company might have paid off a significant portion of its debt or restructured its financial obligations. This can be seen as a positive sign of debt management and deleveraging.

Overall, the trend in the debt-to-assets ratio for UFP Technologies Inc shows some volatility, indicating varying levels of leverage and potential shifts in the company's capital structure strategy. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively.