Ultra Clean Holdings Inc (UCTT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.99% | 19.58% | 20.46% | 20.86% | 18.46% |
| Operating profit margin | 2.03% | 5.07% | 8.84% | 8.68% | 2.80% |
| Pretax margin | -1.16% | 3.30% | 7.01% | 6.93% | 0.06% |
| Net profit margin | -1.79% | 1.70% | 5.69% | 5.55% | -0.88% |
The profitability ratios of Ultra Clean Holdings Inc have exhibited fluctuating trends over the past five years.
1. Gross Profit Margin: The company's gross profit margin has decreased from 20.46% in 2021 to 15.99% in 2023. This indicates that the company is generating less gross profit for each dollar of revenue. A declining gross profit margin could be attributed to factors such as increased competition or rising costs.
2. Operating Profit Margin: The operating profit margin has shown a similar declining trend, decreasing from 8.84% in 2021 to 2.03% in 2023. This suggests that the company's operating expenses relative to its revenue have increased, impacting its profitability at the operating level.
3. Pretax Margin: The pretax margin has fluctuated over the years, with a significant decline to -1.16% in 2023. A negative pretax margin indicates that the company is incurring losses before accounting for taxes. This could be a result of ineffective cost management or other operational challenges.
4. Net Profit Margin: The net profit margin has also fluctuated, with a notable decrease to -1.79% in 2023. A negative net profit margin means that the company is experiencing losses at the net income level. This indicates that after accounting for all expenses, including taxes, the company is not generating profits.
In summary, the declining trends in profitability ratios for Ultra Clean Holdings Inc suggest potential challenges in managing costs, maintaining pricing power, or generating revenue growth. It is important for the company to address these issues to improve its overall profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.88% | 6.14% | 9.17% | 11.01% | 2.93% |
| Return on assets (ROA) | -1.67% | 2.06% | 5.90% | 7.04% | -0.92% |
| Return on total capital | 2.20% | 8.13% | 12.45% | 14.33% | 3.64% |
| Return on equity (ROE) | -3.71% | 4.55% | 14.08% | 14.57% | -2.15% |
Ultra Clean Holdings Inc's profitability ratios have shown some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has declined over the period, from 11.01% in 2020 to 1.88% in 2023. This indicates a decreasing trend in the company's ability to generate operating income relative to its total assets.
2. Return on assets (ROA) has also fluctuated, with negative returns in 2021 and 2019. While there was an improvement in 2022, the negative returns in the other years suggest inefficiencies in utilizing assets to generate profits.
3. Return on total capital has shown a similar pattern, declining from 14.33% in 2020 to 2.20% in 2023. This ratio reflects the company's ability to generate returns on both equity and debt capital employed in the business.
4. Return on equity (ROE) has been inconsistent, with negative returns in 2019 and 2023. The significant fluctuation in ROE indicates varying levels of profitability generated for shareholders' equity.
Overall, Ultra Clean Holdings Inc's profitability ratios reflect some challenges in effectively utilizing assets and capital to generate sustainable profits. Further analysis and investigation into the company's operations and financial performance may be warranted to understand the underlying drivers of these fluctuations.