UFP Technologies Inc (UFPT)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 28,000 | 51,000 | 71,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 286,091 | 237,545 | 194,446 | 176,893 | 161,991 |
| Debt-to-equity ratio | 0.10 | 0.21 | 0.37 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $28,000K ÷ $286,091K
= 0.10
The debt-to-equity ratio of UFP Technologies Inc has shown a decreasing trend over the past five years. The ratio was 0.10 in 2023, down from 0.21 in 2022 and significantly lower than the ratios of 0.37 in 2021 and 0.00 in both 2020 and 2019.
A decreasing debt-to-equity ratio generally indicates that the company is relying less on debt financing and has a stronger equity position relative to its debt. This can be perceived as a positive sign of financial health and stability, as lower levels of debt may reduce financial risk and increase flexibility in managing capital structure.
It is important to note that a low debt-to-equity ratio does not necessarily mean a company is in a stronger financial position, as excessive reliance on equity financing may also have implications on profitability and return on equity. Additional analysis of the company's overall financial performance and capital structure would be needed to provide a more comprehensive assessment of its financial health.
Peer comparison
Dec 31, 2023