Ultra Clean Holdings Inc (UCTT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 313,900 | 307,000 | 358,800 | 466,500 | 200,300 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 241,100 | 180,800 | 253,700 | 250,100 | 145,500 |
| Total current liabilities | US$ in thousands | 335,600 | 310,000 | 389,200 | 469,100 | 201,200 |
| Quick ratio | 1.65 | 1.57 | 1.57 | 1.53 | 1.72 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($313,900K
+ $—K
+ $241,100K)
÷ $335,600K
= 1.65
Ultra Clean Holdings Inc's quick ratio, which measures the company's ability to cover its short-term liabilities with its most liquid assets, such as cash and marketable securities, has shown a steady trend over the past five years. It stood at 1.72 as of December 31, 2020, indicating a strong ability to meet short-term obligations without relying heavily on inventory.
Although there was a slight decline in the quick ratio to 1.53 as of December 31, 2021, the ratio remained above 1, suggesting that the company could still comfortably cover its short-term liabilities using its liquid assets. This decline may be something to monitor to ensure the company's liquidity position remains sound.
In the following years, the quick ratio improved slightly to 1.57 as of both December 31, 2022, and December 31, 2023, before increasing further to 1.65 as of December 31, 2024. These ratios indicate a consistent ability to meet short-term obligations comfortably, which is a positive sign for the company's financial health and liquidity management.
Overall, the trend in Ultra Clean Holdings Inc's quick ratio suggests that the company has maintained a strong liquidity position over the years, with ample liquid assets to cover its short-term liabilities, providing a sense of stability and financial strength.
Peer comparison
Dec 31, 2024