Ultra Clean Holdings Inc (UCTT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 307,000 | 358,800 | 466,500 | 200,300 | 162,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 310,000 | 389,200 | 469,100 | 201,200 | 210,600 |
| Cash ratio | 0.99 | 0.92 | 0.99 | 1.00 | 0.77 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($307,000K
+ $—K)
÷ $310,000K
= 0.99
The cash ratio of Ultra Clean Holdings Inc has been relatively stable over the past five years, ranging from 0.77 to 1.00. This ratio reflects the company's ability to cover its short-term liabilities with its cash and cash equivalents alone.
A cash ratio of 1.00 indicates that the company has just enough cash to cover its current liabilities, which suggests a strong liquidity position. However, the slight fluctuations in the cash ratio over the years may indicate changes in the company's liquidity management or operating cash flows.
The consistency of the cash ratio around 1.00 in recent years signals that Ultra Clean Holdings Inc has managed its liquidity well and has maintained a healthy level of cash reserves compared to its short-term obligations. This stability in liquidity can be seen as a positive indicator of the company's financial health and ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2023