UFP Technologies Inc (UFPT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 342,760 | 286,091 | 237,545 | 194,446 | 176,893 |
| Debt-to-equity ratio | 0.52 | 0.10 | 0.21 | 0.37 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $176,875K ÷ $342,760K
= 0.52
The debt-to-equity ratio of UFP Technologies Inc has shown fluctuations over the past five years. In December 31, 2020, the company had a debt-to-equity ratio of 0.00, indicating no debt or a very low level of debt relative to its equity. However, by December 31, 2021, the ratio increased to 0.37, suggesting that the company had taken on more debt compared to its equity.
In the subsequent years, the trend reversed, with the debt-to-equity ratio decreasing to 0.21 in December 31, 2022, and further dropping to 0.10 in December 31, 2023. This indicates a lower reliance on debt financing relative to equity during these periods.
However, by December 31, 2024, the debt-to-equity ratio spiked to 0.52, signaling a significant increase in debt compared to equity, which may raise concerns about the company's leverage and financial risk.
Overall, the analysis of UFP Technologies Inc's debt-to-equity ratio suggests that the company has experienced fluctuations in its capital structure over the period, highlighting the importance of monitoring and managing debt levels to maintain a healthy financial position.
Peer comparison
Dec 31, 2024