UFP Technologies Inc (UFPT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 404,136 | 378,192 | 334,132 | 203,204 | 188,758 |
| Total stockholders’ equity | US$ in thousands | 286,091 | 237,545 | 194,446 | 176,893 | 161,991 |
| Financial leverage ratio | 1.41 | 1.59 | 1.72 | 1.15 | 1.17 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $404,136K ÷ $286,091K
= 1.41
The financial leverage ratio of UFP Technologies Inc has fluctuated over the past five years, with a notable decrease from 1.72 in 2021 to 1.15 in 2020. This decrease suggests a reduction in the company's reliance on debt to finance its operations and investments. However, the ratio increased again in 2022 to 1.59 and slightly decreased to 1.41 in 2023.
The financial leverage ratio of 1.41 in 2023 indicates that the company's total assets are financed by 1.41 times the total equity, highlighting a moderate level of leverage. It is important for stakeholders to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its financial obligations and the level of risk associated with its capital structure.
Peer comparison
Dec 31, 2023