UFP Technologies Inc (UFPT)

Debt-to-capital 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 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
Debt-to-capital ratio 0.09 0.13 0.17 0.19 0.18 0.23 0.32 0.31 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.07 0.08 0.12

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $28,000K ÷ ($28,000K + $286,091K)
= 0.09

The debt-to-capital ratio of UFP Technologies Inc has shown fluctuations over the past few quarters. The ratio has generally been below 0.3, indicating a relatively low level of debt compared to the company's capital structure.

There was a significant increase in the ratio from 0.09 at the end of December 2023 to 0.19 at the end of March 2023, suggesting a higher proportion of debt to total capital. This trend continued with the ratio peaking at 0.32 at the end of June 2022 before gradually decreasing to 0.09 by the end of December 2023.

The company seems to have made strategic changes in its capital structure to reduce debt levels following the spike in mid-2022. Furthermore, the periods of 0.00 ratios indicate instances where the company had no debt or only negligible amounts relative to its capital base.

Overall, the trend in the debt-to-capital ratio suggests that UFP Technologies Inc has been actively managing its debt levels, maintaining a generally conservative approach to leverage. Further analysis should be conducted to understand the reasons behind the fluctuations and the impact on the company's financial health and long-term sustainability.