Ultra Clean Holdings Inc (UCTT)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,457,200	1,541,500	1,682,300	1,819,200	1,909,300	1,937,300	1,866,300	1,791,300	1,671,600	1,477,600	1,326,700	1,182,300	1,106,800	1,044,900	963,000	909,300	869,400	850,800	843,100	870,000
Inventory	US$ in thousands	374,500	378,300	378,300	433,000	443,900	405,100	405,100	440,300	379,200	324,600	302,000	189,200	180,400	175,300	193,800	187,000	172,400	153,549	164,055	180,299
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,457,200K ÷ $374,500K
= 3.89

Ultra Clean Holdings Inc's inventory turnover has fluctuated over the past few quarters, ranging from a low of 3.89 to a high of 6.25. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring how many times inventory is sold and replaced within a specific period. A higher inventory turnover ratio generally indicates that inventory is selling quickly, which is favorable as it reduces the risk of obsolete inventory or holding excess inventory.

In general, Ultra Clean Holdings Inc's inventory turnover has shown variability, with peaks and troughs throughout the periods analyzed. This could be due to seasonal fluctuations, changes in demand for the company's products, or adjustments in inventory management strategies. It is important for the company to closely monitor and analyze its inventory turnover trends to ensure optimal inventory management and operational efficiency.