Ultra Clean Holdings Inc (UCTT)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,457,200	1,909,300	1,671,600	1,106,800	869,400
Payables	US$ in thousands	192,900	253,500	332,900	121,300	133,100
Payables turnover		7.55	7.53	5.02	9.12	6.53

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,457,200K ÷ $192,900K
= 7.55

Ultra Clean Holdings Inc's payables turnover has shown some variability over the past five years. In 2023, the payables turnover ratio was 7.55, indicating that the company converted its accounts payables into cash approximately 7.55 times during the year. This was slightly higher compared to the ratio of 7.53 in 2022.

However, it is noteworthy that in 2021, the payables turnover ratio dropped to 5.02, which suggests that the company took longer to pay off its suppliers or did not manage its payables as efficiently. The ratio then improved in 2022 and 2023.

The payables turnover ratio of 9.12 in 2020 was the highest among the years presented, indicating that the company was able to manage its payables more effectively in that year. In 2019, the payables turnover ratio was 6.53, showing a moderate turnover of payables during that year.

Overall, fluctuations in the payables turnover ratio may indicate changes in the company's payment terms with suppliers, efficiency in managing working capital, or shifts in the company's purchasing and payment processes over the years.