Ultra Clean Holdings Inc (UCTT)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Current ratio 2.89 2.88 2.82 2.42 2.71

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $970,100K ÷ $335,600K
= 2.89

Ultra Clean Holdings Inc's current ratio, a measure of short-term liquidity, has shown a relatively consistent trend over the last five years. The ratio stood at 2.71 in December 31, 2020, indicating that the company had $2.71 in current assets for every $1 in current liabilities.

Although there was a slight decline in the current ratio to 2.42 as of December 31, 2021, suggesting a potential decrease in short-term liquidity, the ratio rebounded in the following years. By December 31, 2024, the current ratio had increased to 2.89, showing a healthy level of liquidity.

Overall, Ultra Clean Holdings Inc has maintained a strong current ratio above 2, indicating that the company has sufficient current assets to cover its short-term obligations. This trend suggests that the company has been managing its current assets and liabilities effectively to ensure financial stability in the short term.