Ultra Clean Holdings Inc (UCTT)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,741,300 | 1,457,200 | 1,909,300 | 1,671,600 | 1,106,800 |
| Payables | US$ in thousands | 212,500 | 192,900 | 253,500 | 332,900 | 121,300 |
| Payables turnover | 8.19 | 7.55 | 7.53 | 5.02 | 9.12 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,741,300K ÷ $212,500K
= 8.19
Ultra Clean Holdings Inc's payables turnover has shown some fluctuation over the past five years.
As of December 31, 2020, the payables turnover was relatively high at 9.12 times, indicating that the company was able to efficiently manage its accounts payable by paying its suppliers 9.12 times during the year.
However, by December 31, 2021, the payables turnover decreased to 5.02 times, suggesting a decrease in the efficiency of managing payables compared to the previous year. This could be due to various reasons such as changes in payment terms or delays in processing payments.
In the following years, the payables turnover seemed to improve slightly, reaching 7.53 times as of December 31, 2022, 7.55 times as of December 31, 2023, and 8.19 times as of December 31, 2024. This increasing trend indicates that the company was able to better manage its payables over time.
Overall, fluctuations in the payables turnover ratio can provide insights into Ultra Clean Holdings Inc's ability to efficiently manage its accounts payable and its relationships with suppliers.
Peer comparison
Dec 31, 2024