UFP Technologies Inc (UFPT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.06 | 0.07 | 0.10 |
| Debt-to-capital ratio | 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 | 0.00 | 0.07 | 0.08 | 0.12 |
| Debt-to-equity ratio | 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 | 0.00 | 0.08 | 0.09 | 0.13 |
| 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 |
UFP Technologies Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend over the period analyzed, indicating a lower reliance on debt to finance its assets. The debt-to-capital ratio and debt-to-equity ratio also exhibit a similar decreasing trend, suggesting that the company is using less debt relative to its capital and equity.
The financial leverage ratio, which measures the company's ability to meet its financial obligations through debt financing, has also shown a declining trend, indicating a decreasing reliance on debt to fund its operations. Overall, the solvency ratios suggest that UFP Technologies Inc has been managing its debt levels effectively and has a strong financial position with lower leverage over time.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 36.08 | 26.11 | 21.34 | 17.29 |
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 can easily cover its interest obligations.
Analyzing the trend in UFP Technologies Inc's interest coverage ratio, we observe fluctuating values over the periods provided. The ratio was relatively high at the end of 2023 and had been consistently strong throughout the year. This suggests that the company had a comfortable margin of safety in meeting its interest payments.
However, the interest coverage ratio had shown a decreasing trend in the preceding periods from mid-2022 to early 2023 before picking up again. During this period, the interest coverage ratio declined significantly, indicating potentially increased financial risk.
Overall, UFP Technologies Inc's interest coverage ratio has demonstrated variability over time, with recent ratios indicating an improvement in the company's ability to service its debt. Management should continue to monitor and manage the company's debt levels to ensure sustainable financial health.