Ultra Clean Holdings Inc (UCTT)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,097,600 1,734,500 2,374,300 2,101,600 1,398,600
Total current assets US$ in thousands 970,100 893,200 1,098,800 1,137,100 545,100
Total current liabilities US$ in thousands 335,600 310,000 389,200 469,100 201,200
Working capital turnover 3.31 2.97 3.35 3.15 4.07

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,097,600K ÷ ($970,100K – $335,600K)
= 3.31

The working capital turnover for Ultra Clean Holdings Inc has shown some fluctuation over the years. In 2020, the company's working capital turnover was 4.07, indicating that the company was able to efficiently utilize its working capital to generate sales. However, in the following years, the ratio decreased to 3.15 in 2021, 3.35 in 2022, 2.97 in 2023, and then increased again to 3.31 in 2024.

Overall, the company's working capital turnover has been relatively stable, with some fluctuations. A working capital turnover ratio above 1 indicates that the company is effectively using its working capital to generate sales. The decrease in the ratio in 2023 may warrant further investigation into the company's working capital management efficiency during that period. It is essential for the company to maintain a balance in managing its working capital to ensure operational efficiency and financial stability in the long term.