Ultra Clean Holdings Inc (UCTT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		4.57	3.89	4.30	4.41	6.14
DOH	days	79.86	93.80	84.86	82.80	59.49

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.57
= 79.86

Ultra Clean Holdings Inc's days of inventory on hand (DOH) have shown a increasing trend over the past five years.

In December 31, 2020, the DOH was 59.49 days, indicating the company held its inventory for approximately 60 days before selling it. Subsequently, the DOH increased to 82.80 days by December 31, 2021, and further climbed to 84.86 days by December 31, 2022. This suggests that the company is taking longer to sell its inventory, which could potentially indicate issues with sales or production efficiency.

By December 31, 2023, the DOH reached 93.80 days, signaling a significant increase in the time it takes for Ultra Clean Holdings Inc to turn its inventory into sales. This prolonged holding period could tie up capital and increase carrying costs for the company if not managed effectively.

In the most recent financial year ending December 31, 2024, the DOH decreased slightly to 79.86 days. While this decline may indicate some improvement in inventory management, the overall increasing trend in DOH over the five-year period warrants close monitoring to ensure efficient utilization of resources and timely inventory turnover going forward.