Ultra Clean Holdings Inc (UCTT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	307,000	358,800	466,500	200,300	162,500
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	180,800	253,700	250,100	145,500	112,700
Total current liabilities	US$ in thousands	310,000	389,200	469,100	201,200	210,600
Quick ratio		1.57	1.57	1.53	1.72	1.31

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($307,000K + $—K + $180,800K) ÷ $310,000K
= 1.57

The quick ratio of Ultra Clean Holdings Inc has remained relatively stable over the past five years, ranging from 1.31 to 1.72. The ratio indicates the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 suggests that the company has an adequate level of liquid assets to meet its short-term obligations.

In this case, the consistent quick ratio above 1 indicates that Ultra Clean Holdings Inc has maintained a strong liquidity position over the years, with a sufficient level of liquid assets to cover its short-term liabilities. The slight fluctuations in the ratio suggest that the company has been managing its liquidity effectively, overall indicating good financial health in terms of short-term liquidity.