UFP Technologies Inc (UFPT)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	628,995	404,136	378,192	334,132	203,204
Total stockholders’ equity	US$ in thousands	342,760	286,091	237,545	194,446	176,893
Financial leverage ratio		1.84	1.41	1.59	1.72	1.15

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $628,995K ÷ $342,760K
= 1.84

The financial leverage ratio of UFP Technologies Inc has shown fluctuations over the past five years. In 2020, the ratio stood at 1.15, indicating a moderate level of leverage. However, by the end of 2021, the ratio increased significantly to 1.72, suggesting a higher reliance on debt to finance its operations.

Subsequently, in 2022, the ratio decreased slightly to 1.59, but remained elevated compared to the 2020 level. By the end of 2023, there was a further decline in the ratio to 1.41, indicating a reduction in financial leverage.

However, in 2024, the financial leverage ratio spiked to 1.84, reaching a high level compared to the previous years. This suggests that UFP Technologies Inc may have increased its debt levels relative to its equity, which could pose risks associated with higher leverage.

Overall, the trend in the financial leverage ratio of UFP Technologies Inc reflects fluctuations in the company's capital structure and debt management practices over the years. An increasing ratio may indicate higher financial risk and potential challenges in meeting debt obligations, while a decreasing ratio may signal improved financial stability. It is essential for investors and stakeholders to closely monitor the company's leverage levels to assess its overall financial health and risk profile.