Ultra Clean Holdings Inc (UCTT)
Payables 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 |
| Payables | US$ in thousands | 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 | 133,100 | 101,008 | 97,288 | 99,204 |
| Payables turnover | 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 | 6.53 | 8.42 | 8.67 | 8.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,457,200K ÷ $192,900K
= 7.55
The payables turnover ratio for Ultra Clean Holdings Inc has shown fluctuating trends over the past few quarters. The ratio measures how efficiently the company is managing its trade payables by evaluating how many times a company pays off its average accounts payable balance during a specific period.
From December 2019 to September 2021, the payables turnover ratio generally increased, indicating that the company was paying off its suppliers more frequently. This could be a positive sign as it suggests improved liquidity or better negotiation terms with suppliers.
However, from September 2021 to December 2023, the payables turnover ratio started to decrease, signaling that the company was taking longer to settle its payables. A lower ratio could mean a potential cash flow issue, strained supplier relationships, or a deliberate strategy to hold onto cash longer.
Overall, it is important for Ultra Clean Holdings Inc to closely monitor its payables turnover ratio and understand the reasons behind the fluctuations to effectively manage its working capital and supplier relationships.
Peer comparison
Dec 31, 2023