Ultra Clean Holdings Inc (UCTT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 8.70 | 8.68 | 9.06 | 9.15 | 9.59 | 10.89 | 11.51 | 11.79 | 9.36 | 10.27 | — | — | 8.40 | 7.98 | 7.92 | 8.90 | 9.61 | 9.04 | 8.69 | 9.96 |
| 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 |
| Working capital turnover | 3.31 | 3.16 | 3.07 | 3.07 | 2.97 | 2.94 | 3.21 | 3.36 | 3.35 | 3.32 | 3.27 | 3.19 | 3.15 | 2.89 | 2.59 | 4.01 | 4.07 | 4.13 | 3.56 | 3.58 |
Ultra Clean Holdings Inc's activity ratios show varying trends over the past few years.
1. Inventory turnover: The company's inventory turnover has been fluctuating, ranging from a low of 3.84 to a high of 6.25. The turnover has generally decreased towards the end of the period, indicating a potentially slower rate at which the company is selling its inventory.
2. Receivables turnover: The receivables turnover has also shown fluctuations, with some quarters having missing data. Overall, the turnover ratio has ranged from 7.92 to 11.79, suggesting that the company is collecting its receivables at a varied pace.
3. Payables turnover: Ultra Clean Holdings Inc's payables turnover has fluctuated as well, with a range from 5.02 to 9.28. This indicates that the company's payment terms to suppliers have varied over time.
4. Working capital turnover: The working capital turnover has shown some variability, ranging from 2.59 to 4.13. This ratio reflects how efficiently the company is using its working capital to generate sales. The trend shows some fluctuations but generally maintains a relatively stable level over the period.
In conclusion, Ultra Clean Holdings Inc's activity ratios demonstrate fluctuations and varying trends over the period, which should be analyzed in conjunction with other financial metrics for a comprehensive assessment.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.87 | 89.42 | 93.20 | 94.94 | 93.80 | 89.57 | 82.08 | 86.88 | 84.86 | 76.32 | 79.23 | 89.72 | 82.80 | 80.18 | 83.09 | 58.41 | 59.49 | 61.24 | 73.45 | 75.06 |
| Days of sales outstanding (DSO) | days | 41.96 | 42.07 | 40.31 | 39.91 | 38.05 | 33.53 | 31.70 | 30.96 | 39.00 | 35.55 | — | — | 43.44 | 45.72 | 46.10 | 41.01 | 37.97 | 40.37 | 42.02 | 36.66 |
| Number of days of payables | days | 44.55 | 51.79 | 53.37 | 52.77 | 48.32 | 44.40 | 39.81 | 39.32 | 48.46 | 51.11 | 50.73 | 58.70 | 72.69 | 67.02 | 63.55 | 50.91 | 40.00 | 38.91 | 53.10 | 51.90 |
Ultra Clean Holdings Inc's activity ratios show trends in how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH): The company's DOH has been fluctuating over the years, ranging from a low of 59.49 days in December 2020 to a high of 94.94 days in March 2024. This indicates that the company may have had challenges in managing its inventory efficiently, with the trend showing an increase in DOH in recent periods.
2. Days of Sales Outstanding (DSO): Ultra Clean Holdings Inc's DSO has also varied, with a decreasing trend from 46.10 days in June 2021 to 39.91 days in March 2024. A lower DSO suggests that the company is collecting receivables more quickly, which is positive for cash flow and liquidity.
3. Number of Days of Payables: The number of days of payables gives insights into how long the company takes to pay its suppliers. Ultra Clean Holdings Inc's payables days have shown some fluctuations, with a range of 38.91 days in September 2020 to 72.69 days in December 2021. The data suggests that the company has been extending its payment cycle over the years, indicating potential cash flow advantages from delayed payments.
Overall, analyzing these activity ratios provides valuable insights into Ultra Clean Holdings Inc's operational efficiency and cash flow management. It is important for the company to strike a balance between these ratios to ensure optimal working capital management and sustainable growth.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 6.44 | 6.04 | 5.74 | 5.40 | 5.28 | 6.01 | 6.71 | 7.74 | 8.49 | 10.00 | 9.42 | 8.99 | 8.67 | 8.14 | 7.63 | 9.51 | 8.79 | 8.74 | 8.15 | 7.86 |
| Total asset turnover | 1.09 | 1.02 | 0.97 | 0.94 | 0.93 | 1.01 | 1.12 | 1.20 | 1.21 | 1.24 | 1.20 | 1.12 | 1.04 | 0.96 | 0.90 | 1.26 | 1.27 | 1.24 | 1.09 | 1.05 |
Ultra Clean Holdings Inc's long-term activity ratios indicate the efficiency of the company in utilizing its fixed assets and total assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio increased steadily from March 31, 2020, to June 30, 2022, reaching its peak at 10.00 on September 30, 2022. This suggests that the company effectively used its fixed assets to generate sales during this period.
- However, from December 31, 2022, to December 31, 2024, the fixed asset turnover ratio declined, indicating a possible decrease in the efficiency of utilizing fixed assets to generate revenue.
2. Total Asset Turnover:
- The total asset turnover ratio fluctuated over the years, with a general increasing trend from March 31, 2020, to December 31, 2022. This indicates improved efficiency in utilizing total assets to generate sales during this period.
- From March 31, 2023, to December 31, 2024, the total asset turnover ratio decreased, suggesting a potential decrease in efficiency in utilizing total assets to generate revenue.
Overall, the analysis of Ultra Clean Holdings Inc's long-term activity ratios shows variations in the efficiency of utilizing fixed and total assets to generate revenue over the years, with periods of improvement followed by potential declines.