Ultra Clean Holdings Inc (UCTT)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,734,500	2,374,300	2,101,600	1,398,600	1,066,200
Receivables	US$ in thousands	180,800	253,700	250,100	145,500	112,700
Receivables turnover		9.59	9.36	8.40	9.61	9.46

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,734,500K ÷ $180,800K
= 9.59

The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. Ultra Clean Holdings Inc's receivables turnover has shown some fluctuations over the past five years. In 2023, the company's receivables turnover ratio was 9.59, which increased from 9.36 in 2022 and 8.40 in 2021, indicating an improvement in the company's ability to collect cash from its customers.

A higher receivables turnover ratio generally implies that the company is more effective in managing its accounts receivable and collecting payments from its customers in a timely manner. Ultra Clean Holdings Inc's receivables turnover has been consistently above 9 in the past five years, which is generally a positive sign.

However, it is important to note that a very high receivables turnover ratio could also indicate very strict credit policies that may impact the company's sales and profitability. Therefore, it is essential for the company to strike a balance between quick collections and maintaining good customer relationships. Overall, the trend in Ultra Clean Holdings Inc's receivables turnover ratio suggests that the company has been efficiently managing its accounts receivable over the past five years.