Ultra Clean Holdings Inc (UCTT)

Inventory 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
Cost of revenue (ttm) US$ in thousands 1,741,200 1,643,400 1,566,200 1,492,000 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
Inventory US$ in thousands 381,000 402,600 399,900 388,100 374,500 378,300 378,300 433,000 443,900 405,100 405,100 440,300 379,200 324,600 302,000 189,200 180,400 175,300 193,800 187,000
Inventory turnover 4.57 4.08 3.92 3.84 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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,741,200K ÷ $381,000K
= 4.57

Ultra Clean Holdings Inc's inventory turnover has shown fluctuations over the periods analyzed. The ratio, which measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced during a specific period, has ranged from a low of 3.84 to a high of 6.25.

The trend indicates an improvement in inventory turnover from March 31, 2020, to March 31, 2021, where the ratio increased steadily. However, there was a notable decline from June 30, 2021, until September 30, 2021. Despite some fluctuations in between, the company saw a slight recovery in inventory turnover by December 31, 2021.

During the period from March 31, 2022, to December 31, 2024, inventory turnover remained relatively stable, fluctuating within a narrow range from 3.84 to 4.57. This stability, albeit at a lower level compared to the peak in March 31, 2021, suggests that the company's efficiency in managing inventory has plateaued over the recent quarters.

Overall, the trend in Ultra Clean Holdings Inc's inventory turnover indicates some variability and a stabilization of the ratio over the reviewed periods. Further analysis into the company's inventory management practices and overall operational efficiency may provide insights into the factors influencing these fluctuations and the potential for improvement in inventory turnover in the future.