UFP Technologies Inc (UFPT)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 628,995 638,508 422,396 407,679 404,136 399,810 397,992 390,782 378,192 388,319 395,051 363,346 334,132 220,686 217,286 209,180 203,204 200,664 197,219 194,213
Total stockholders’ equity US$ in thousands 342,760 329,146 310,176 295,016 286,091 272,383 260,285 246,484 237,545 226,159 207,290 199,078 194,446 190,753 186,314 180,819 176,893 172,439 169,212 166,275
Financial leverage ratio 1.84 1.94 1.36 1.38 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

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 some fluctuations over the past few years. It started at a stable level around 1.15 to 1.17 from December 2020 to March 2021. However, there was a significant increase in this ratio to 1.72 by December 2021, followed by further increases in subsequent periods, reaching a peak of 1.94 by September 2024.

This indicates that UFP Technologies Inc has been gradually taking on more debt relative to its equity, which can increase financial risk and interest payments. The sudden spike in the financial leverage ratio might be a result of increased borrowing or a decrease in equity during that period.

It is important for investors and stakeholders to closely monitor the financial leverage ratio of the company to assess its ability to meet its debt obligations and manage financial risks effectively. Additionally, management should carefully evaluate the capital structure to maintain a healthy balance between debt and equity financing.