Ultra Clean Holdings Inc (UCTT)

Days of inventory on hand (DOH)

		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
Inventory turnover		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	5.04	5.54	5.14	4.83
DOH	days	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	72.38	65.87	71.02	75.64

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 fluctuated over the past few years. The trend shows some variations quarter over quarter but has generally ranged between 58.41 days to 93.80 days.

During the most recent quarter, DOH was at 93.80 days, indicating the company held inventory for a significant period before selling it. This could suggest potential inefficiencies in managing inventory levels, which may tie up working capital and increase holding costs.

On the other hand, the lowest DOH of 58.41 days occurred in the first quarter of 2021, indicating improved inventory management efficiency during that period.

In order to enhance operational efficiency and reduce holding costs, Ultra Clean Holdings Inc may need to focus on optimizing its inventory management processes, including improving demand forecasting, implementing lean inventory practices, and enhancing supply chain coordination.