Ultra Clean Holdings Inc (UCTT)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		8.70	9.59	9.36	8.40	9.61
DSO	days	41.95	38.05	39.00	43.44	37.97

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.70
= 41.95

Days Sales Outstanding (DSO) is a key metric that measures the average number of days it takes for a company to collect revenue after making a sale. In the case of Ultra Clean Holdings Inc, the DSO has shown some fluctuations over the past five years:

- As of December 31, 2020, Ultra Clean had a DSO of 37.97 days, indicating that the company was efficient in collecting its receivables.
- The DSO increased to 43.44 days by December 31, 2021, suggesting a slight deterioration in the company's collection efficiency.
- By December 31, 2022, the DSO decreased to 39.00 days, showing an improvement in collecting receivables compared to the previous year.
- The DSO further declined to 38.05 days as of December 31, 2023, indicating continued effectiveness in collecting revenue.
- However, by December 31, 2024, the DSO increased to 41.95 days, suggesting a potential slowdown in the collection of receivables.

Overall, Ultra Clean Holdings Inc's DSO has exhibited some variation over the years, with fluctuations indicating changes in the company's efficiency in collecting outstanding payments from customers. The company may need to closely monitor its DSO and implement strategies to ensure timely collection of receivables to maintain healthy cash flow and financial stability.