Ultra Clean Holdings Inc (UCTT)

Working capital 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
Revenue (ttm)	US$ in thousands	1,734,500	1,856,200	2,056,200	2,243,400	2,374,200	2,422,900	2,341,600	2,248,100	2,101,600	1,856,100	1,665,700	1,495,300	1,398,600	1,315,400	1,206,400	1,127,000	1,066,200	1,037,200	1,017,000	1,041,800
Total current assets	US$ in thousands	893,200	925,800	935,400	981,200	1,098,800	1,136,100	1,111,800	1,122,700	1,137,100	1,052,700	999,300	636,200	545,100	514,100	565,800	527,900	467,000	442,910	454,591	474,100
Total current liabilities	US$ in thousands	310,000	293,600	294,300	313,700	389,200	407,400	395,400	417,600	469,100	411,000	355,000	263,100	201,200	195,300	226,900	213,000	210,600	162,647	154,969	156,693
Working capital turnover		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	4.16	3.70	3.39	3.28

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,734,500K ÷ ($893,200K – $310,000K)
= 2.97

Ultra Clean Holdings Inc's working capital turnover has displayed fluctuations over the analyzed periods, ranging from a low of 2.59 to a high of 4.16. The company's ability to efficiently utilize its working capital to generate sales revenue peaked in the first quarter of 2020 and the fourth quarter of 2020.

In general, a higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its sales activities. However, it is essential to consider the industry benchmarks and the company's specific business model when evaluating the significance of these figures.

The trend of Ultra Clean Holdings Inc's working capital turnover ratio suggests that the company has been successful in optimizing its working capital efficiency, as indicated by the generally increasing trend from 2019 to 2020. However, there was a slight decrease in the ratio in 2021 and 2022 before picking up again in later periods.

Overall, the analysis of the working capital turnover ratio provides insight into how efficiently Ultra Clean Holdings Inc is converting its working capital into sales revenue and highlights the company's performance in managing its liquidity and operational efficiency.