UFP Technologies Inc (UFPT)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 81,086 71,256 61,636 60,749 57,547 55,543 66,538 61,832 55,480 49,506 28,510 22,378 21,276 21,540 20,192 16,927 16,365 18,251 20,640 24,055
Interest expense (ttm) US$ in thousands 8,061 5,438 2,896 3,408 3,646 3,763 3,660 3,304 2,762 1,929 1,115 382 71 49 50 83 83 150 298 459
Interest coverage 10.06 13.10 21.28 17.83 15.78 14.76 18.18 18.71 20.09 25.66 25.57 58.58 299.66 439.59 403.84 203.94 197.17 121.67 69.26 52.41

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $81,086K ÷ $8,061K
= 10.06

The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Analyzing the interest coverage ratio of UFP Technologies Inc over the past few years, we observe the following trends:

- The interest coverage ratio has shown significant fluctuations over the period, ranging from a low of 10.06 on December 31, 2024, to a high of 439.59 on September 30, 2021.
- There is a general trend of improvement in the interest coverage ratio from 2020 to 2021, with a peak in the third quarter of 2021. However, the ratio started declining thereafter.
- In the recent quarters of 2023 and 2024, there has been a noticeable decrease in the interest coverage ratio, indicating a potential strain on the company's ability to cover its interest expenses.
- The sharp fluctuations in the interest coverage ratio may suggest varying levels of profitability, operational efficiency, and debt management by UFP Technologies Inc during the period under review.

Overall, it is important for stakeholders to closely monitor the interest coverage ratio of UFP Technologies Inc to assess the company's financial health and its ability to service its debt obligations effectively. Further analysis of the company's financial statements and business operations would be necessary to understand the factors driving the changes in the interest coverage ratio.