Ultra Clean Holdings Inc (UCTT)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		3.89	4.30	4.41	6.14	5.04
DOH	days	93.80	84.86	82.80	59.49	72.38

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.89
= 93.80

Ultra Clean Holdings Inc's Days of Inventory on Hand (DOH) has shown variability over the past five years. The company's DOH was 93.80 days as of December 31, 2023, reflecting an increase from the previous year's 84.86 days. This upturn indicates that the company held inventory for a longer period in 2023 compared to 2022.

Analyzing further, the DOH was relatively stable in 2022 and 2021 at 84.86 days and 82.80 days, respectively. However, a significant decrease was observed in 2020, where the DOH dropped to 59.49 days, indicating that the company managed its inventory more efficiently that year.

Looking back to 2019, Ultra Clean Holdings Inc's DOH was at 72.38 days, which was higher compared to 2021 and 2020 but lower than the latest figure for 2023.

The trend in Ultra Clean Holdings Inc's DOH indicates fluctuations in inventory management efficiency over the past five years, with notable increases in 2023 and 2020 but a more steady performance in 2021 and 2022. Further analysis and comparison with industry benchmarks would provide additional insights into the company's inventory management practices.