UFP Technologies Inc (UFPT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 57,547 | 55,481 | 21,244 | 16,366 | 24,320 |
| Interest expense | US$ in thousands | 3,645 | 2,763 | 39 | 83 | 674 |
| Interest coverage | 15.79 | 20.08 | 544.72 | 197.18 | 36.08 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $57,547K ÷ $3,645K
= 15.79
The interest coverage ratio for UFP Technologies Inc has shown fluctuations over the past five years. In 2023, the interest coverage ratio was 15.79, indicating that the company generated 15.79 times more operating income than the interest expense for the year. This represents a decrease from the previous year's ratio of 20.08.
A significant anomaly occurred in 2021, where the interest coverage ratio spiked to 544.72, reflecting a substantial increase from the preceding year. This exceptionally high ratio suggests that in 2021, UFP Technologies Inc generated significantly more operating income relative to its interest expenses, signaling a robust financial health during that period.
In comparison, the interest coverage ratios for 2020 and 2019 were 197.18 and 36.08, respectively. Both ratios demonstrate healthy coverage levels, indicating the company's ability to comfortably meet its interest obligations through its operating income.
Overall, while the interest coverage ratio for UFP Technologies Inc has fluctuated over the past five years, it generally indicates that the company has been effectively generating enough operating income to cover its interest expenses, albeit with some variability in performance.
Peer comparison
Dec 31, 2023