Ultra Clean Holdings Inc (UCTT)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,097,500	1,978,900	1,873,500	1,778,900	1,734,500	1,856,200	2,056,200	2,243,400	2,374,200	2,422,900	2,341,600	2,248,100	2,101,600	1,856,100	1,665,700	1,495,300	1,398,600	1,315,400	1,206,400	1,127,000
Property, plant and equipment	US$ in thousands	325,900	327,700	326,600	329,200	328,300	308,900	306,500	289,900	279,600	242,300	248,600	250,100	242,300	227,900	218,300	157,300	159,200	150,500	148,100	143,400
Fixed asset turnover		6.44	6.04	5.74	5.40	5.28	6.01	6.71	7.74	8.49	10.00	9.42	8.99	8.67	8.14	7.63	9.51	8.79	8.74	8.15	7.86

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,097,500K ÷ $325,900K
= 6.44

Fixed asset turnover ratio is a measure of a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.

Analyzing the data provided for Ultra Clean Holdings Inc, we observe that the fixed asset turnover ratio has experienced fluctuations over the reported quarters. The ratio increased steadily from March 2020 to June 2021, reaching a peak at 9.51 in March 2021. During this period, the company was effectively utilizing its fixed assets to generate revenue.

However, from June 2021 to September 2023, there was a declining trend in the fixed asset turnover ratio. This may indicate a decrease in revenue generation efficiency from the company's fixed assets during this period.

In the latter part of the data range, from March 2024 to December 2024, the fixed asset turnover ratio showed a slight improvement, although it remained lower than the peak observed in March 2021.

Overall, it is essential for Ultra Clean Holdings Inc to monitor and optimize the utilization of its fixed assets to ensure efficient revenue generation and profitability in the long run.