Ultra Clean Holdings Inc (UCTT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 313,900 | 307,000 | 358,800 | 466,500 | 200,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 335,600 | 310,000 | 389,200 | 469,100 | 201,200 |
| Cash ratio | 0.94 | 0.99 | 0.92 | 0.99 | 1.00 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($313,900K
+ $—K)
÷ $335,600K
= 0.94
Ultra Clean Holdings Inc's cash ratio has remained relatively stable over the past five years. The cash ratio provides insight into the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. As of December 31, 2020, the cash ratio was 1.00, indicating that the company had exactly enough cash to cover its short-term obligations at that time.
In the following years, the cash ratio fluctuated slightly, with values ranging from 0.92 to 0.99, indicating that the company's cash position may have varied but generally remained sufficient to meet its short-term obligations. A cash ratio of 1.00 or higher is typically considered ideal as it implies that the company can cover all its current liabilities with cash on hand.
Overall, the consistency and adequacy of Ultra Clean Holdings Inc's cash ratio suggest that the company has maintained a healthy level of liquidity to meet its short-term financial obligations throughout the years under review.
Peer comparison
Dec 31, 2024