Ultra Clean Holdings Inc (UCTT)

Total asset 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
Total assets	US$ in thousands	1,867,700	1,960,900	2,025,400	1,102,500	1,019,300
Total asset turnover		0.93	1.21	1.04	1.27	1.05

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,734,500K ÷ $1,867,700K
= 0.93

Ultra Clean Holdings Inc's total asset turnover has fluctuated over the past five years, ranging from 0.93 to 1.27. A total asset turnover ratio of less than 1 indicates that the company is generating less revenue from its assets, which may suggest inefficiency in asset utilization.

In 2023, the total asset turnover ratio decreased to 0.93 from 1.21 in 2022, indicating a decline in the company's ability to generate sales from its assets. This could be attributed to various factors such as lower sales volume or an increase in total assets without a corresponding increase in revenue.

The ratio of 0.93 in 2023 is lower than the industry average or the company's historical benchmark, which may raise concerns about the company's operational efficiency and its ability to maximize the utilization of its assets to drive revenue growth. It could indicate a need for the company to review its asset management strategies and identify opportunities to improve asset turnover and overall profitability.