Ultra Clean Holdings Inc (UCTT)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.70	8.68	9.06	9.15	9.59	10.89	11.51	11.79	9.36	10.27	—	—	8.40	7.98	7.92	8.90	9.61	9.04	8.69	9.96
DSO	days	41.96	42.07	40.31	39.91	38.05	33.53	31.70	30.96	39.00	35.55	—	—	43.44	45.72	46.10	41.01	37.97	40.37	42.02	36.66

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.70
= 41.96

Days Sales Outstanding (DSO) is a key financial ratio that measures the average number of days it takes for a company to collect payment after making a sale. A lower DSO indicates that the company is able to collect cash more quickly from its customers, which is generally seen as a positive sign.

Analyzing the DSO trend of Ultra Clean Holdings Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the metric over the period.

- The DSO was 36.66 days on March 31, 2020, and showed an increasing trend over the next few quarters, reaching 46.10 days on June 30, 2021.
- Subsequently, there was a decrease in DSO to 35.55 days on September 30, 2022, indicating that the company was able to collect payments more efficiently.
- The DSO remained relatively stable from September 2022 to December 2024, ranging between 30.96 days and 42.07 days, with a slight upward trend towards the end of the period.

Overall, the DSO trend of Ultra Clean Holdings Inc indicates variations in its collection efficiency over the quarters, with periods of improvement and slight deterioration. It is essential for the company to monitor and manage its DSO effectively to ensure timely collections and maintain healthy cash flows.