Ultra Clean Holdings Inc (UCTT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,097,600 | 1,734,500 | 2,374,300 | 2,101,600 | 1,398,600 |
| Property, plant and equipment | US$ in thousands | 325,900 | 328,300 | 279,600 | 242,300 | 159,200 |
| Fixed asset turnover | 6.44 | 5.28 | 8.49 | 8.67 | 8.79 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,097,600K ÷ $325,900K
= 6.44
Ultra Clean Holdings Inc's fixed asset turnover ratio has been relatively stable in the range of 8.49 to 8.79 from December 31, 2020, to December 31, 2022. This indicates that the company is generating $8.49 to $8.79 in revenue for every dollar invested in fixed assets during these years.
However, there is a notable decrease in the fixed asset turnover ratio to 5.28 as of December 31, 2023, followed by a slight recovery to 6.44 as of December 31, 2024. This decline suggests that the company's efficiency in utilizing its fixed assets to generate revenue decreased significantly in 2023, but improved somewhat in 2024.
Overall, Ultra Clean Holdings Inc should closely monitor the trend in its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize its revenue generation efficiency in the future.
Peer comparison
Dec 31, 2024