UFP Technologies Inc (UFPT)

Solvency ratios

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
Debt-to-assets ratio 0.28 0.31 0.08 0.07 0.07 0.10 0.13 0.14 0.13 0.17 0.24 0.25 0.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.34 0.38 0.10 0.09 0.09 0.13 0.17 0.19 0.18 0.23 0.32 0.31 0.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.52 0.61 0.11 0.10 0.10 0.14 0.20 0.23 0.21 0.30 0.46 0.46 0.37 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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

The solvency ratios of UFP Technologies Inc indicate the company's ability to meet its long-term obligations and financial leverage levels over the specified periods.

1. Debt-to-assets ratio: UFP Technologies Inc's debt-to-assets ratio has shown fluctuations over time, ranging from 0.00 to 0.31. The ratio increased to 0.31 as of September 30, 2024, indicating that 31% of the company's assets were financed by debt.

2. Debt-to-capital ratio: The debt-to-capital ratio also displayed variations, reaching a maximum of 0.38 by September 30, 2024. This ratio illustrates the proportion of the company's capital that is funded by debt, reflecting an increase in leverage over the years.

3. Debt-to-equity ratio: UFP Technologies Inc's debt-to-equity ratio escalated to 0.61 by September 30, 2024, signaling that 61% of the company's equity was financed through debt. This indicates an increasing reliance on debt to support the company's operations.

4. Financial leverage ratio: The financial leverage ratio climbed to 1.94 by September 30, 2024, suggesting that the company's level of financial risk also surged. This ratio reflects the company's reliance on debt financing compared to equity.

Overall, the trend across these solvency ratios showcases a growing reliance on debt as a source of financing for UFP Technologies Inc, potentially raising concerns about the company's ability to manage its debt obligations and maintain financial stability in the long run. It is essential for stakeholders to monitor these ratios closely to assess the company's solvency position and financial health.

Coverage ratios

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
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

The interest coverage ratio indicates UFP Technologies Inc's ability to cover its interest obligations with its operating income.

From March 31, 2020, to September 30, 2021, the interest coverage ratio steadily increased from 52.41 to a peak of 439.59, reflecting a strong ability to meet interest payments. This upward trend suggests that the company's operating income was more than sufficient to cover its interest expenses during this period.

However, starting from December 31, 2021, the interest coverage ratio began to decline. Despite remaining relatively healthy, the ratio dropped to 10.06 by December 31, 2024, indicating a potential strain on the company's ability to cover interest costs with its operating income.

The decreasing trend in the interest coverage ratio in the latter period may suggest a need for UFP Technologies Inc to closely monitor its interest obligations and operating income to ensure financial stability and sustainability going forward.