Ultra Clean Holdings Inc (UCTT)

Current ratio

		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
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
Current ratio		2.88	3.15	3.18	3.13	2.82	2.79	2.81	2.69	2.42	2.56	2.81	2.42	2.71	2.63	2.49	2.48	2.22	2.72	2.93	3.03

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $893,200K ÷ $310,000K
= 2.88

The current ratio of Ultra Clean Holdings Inc has shown a generally improving trend over the past five quarters, indicating the company's ability to meet short-term obligations with its current assets. The current ratio has ranged between 2.22 and 3.18 during this period, with the latest value standing at 3.15 as of September 30, 2023.

A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of financial health. The increasing trend in the current ratio suggests that Ultra Clean Holdings Inc has been maintaining a strong liquidity position, with the ability to cover its short-term obligations comfortably.

It is important to note that while a high current ratio is generally favorable, excessively high ratios may indicate that the company is not efficiently utilizing its current assets. Therefore, a balance needs to be maintained to ensure optimal use of resources while also safeguarding against liquidity risks.