Ultra Clean Holdings Inc (UCTT)

Days of inventory on hand (DOH)

		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
Inventory turnover		4.57	4.08	3.92	3.84	3.89	4.07	4.45	4.20	4.30	4.78	4.61	4.07	4.41	4.55	4.39	6.25	6.14	5.96	4.97	4.86
DOH	days	79.87	89.42	93.20	94.94	93.80	89.57	82.08	86.88	84.86	76.32	79.23	89.72	82.80	80.18	83.09	58.41	59.49	61.24	73.45	75.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.57
= 79.87

The Days of Inventory on Hand (DOH) for Ultra Clean Holdings Inc has shown some fluctuations over the last few years. The DOH measures the average number of days that inventory is held before being sold or used up.

From March 31, 2020, to December 31, 2022, the DOH generally decreased from 75.06 days to 84.86 days, indicating an improvement in inventory management efficiency. However, there was a slight increase to 86.88 days as of March 31, 2023, which could suggest that the company may be holding more inventory relative to its sales.

The period following shows some volatility in the DOH, with values fluctuating between 82.08 days and 94.94 days up to June 30, 2024. This fluctuation could indicate challenges in predicting demand or managing inventory levels effectively.

Overall, it may be beneficial for Ultra Clean Holdings Inc to review its inventory management practices to ensure optimal levels that balance the need for product availability with the risk of holding excess inventory.