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.