UFP Technologies Inc (UFPT)

Financial leverage 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
Total assets	US$ in thousands	404,136	399,810	397,992	390,782	378,192	388,319	395,051	363,346	334,132	220,686	217,286	209,180	203,204	200,664	197,219	194,213	188,758	200,338	194,965	192,663
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
Financial leverage ratio		1.41	1.47	1.53	1.59	1.59	1.72	1.91	1.83	1.72	1.16	1.17	1.16	1.15	1.16	1.17	1.17	1.17	1.29	1.30	1.33

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 been fluctuating over the past few quarters. The ratio indicates that the company has been relying more on debt to finance its operations compared to equity.

From December 2019 to June 2021, the financial leverage ratio increased steadily, reaching a peak of 1.91 in June 2022. This suggests that the company took on more debt relative to equity during this period.

Subsequently, there was a slight decrease in the ratio from June 2022 to March 2023, which could indicate a reduction in debt levels or an increase in equity. However, the ratio started increasing again from March 2023 to December 2023, showing a return to higher leverage levels.

Overall, the trend in the financial leverage ratio of UFP Technologies Inc indicates fluctuating levels of financial leverage, with periods of increased reliance on debt followed by some moderation. It is important for the company to carefully manage its debt levels to maintain a healthy balance between debt and equity financing.