Ultra Clean Holdings Inc (UCTT)
Payables 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 |
| Payables | US$ in thousands | 212,500 | 233,200 | 229,000 | 215,700 | 192,900 | 187,500 | 183,500 | 196,000 | 253,500 | 271,300 | 259,400 | 288,100 | 332,900 | 271,300 | 231,000 | 164,900 | 121,300 | 111,400 | 140,100 | 129,300 |
| Payables turnover | 8.19 | 7.05 | 6.84 | 6.92 | 7.55 | 8.22 | 9.17 | 9.28 | 7.53 | 7.14 | 7.19 | 6.22 | 5.02 | 5.45 | 5.74 | 7.17 | 9.12 | 9.38 | 6.87 | 7.03 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,741,200K ÷ $212,500K
= 8.19
The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a certain period.
Ultra Clean Holdings Inc's payables turnover ratio has shown some fluctuations over the past few years, ranging from a low of 5.02 in December 2021 to a high of 9.38 in September 2020. The trend in the payables turnover ratio indicates that the company's ability to convert its accounts payable into cash varies over time.
A decreasing trend in the payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could strain relationships if not managed effectively. On the other hand, an increasing trend in the ratio may indicate that the company is paying off its suppliers more quickly, potentially improving its working capital management.
Overall, a detailed analysis of Ultra Clean Holdings Inc's payables turnover ratio over time can provide valuable insights into the company's liquidity, operational efficiency, and relationships with suppliers.
Peer comparison
Dec 31, 2024