Ultra Clean Holdings Inc (UCTT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.99% | 15.99% | 19.58% | 20.46% | 20.86% |
| Operating profit margin | 4.35% | 2.03% | 5.07% | 8.84% | 8.68% |
| Pretax margin | 2.69% | -1.16% | 3.30% | 7.01% | 6.93% |
| Net profit margin | 1.13% | -1.79% | 1.70% | 5.69% | 5.55% |
Ultra Clean Holdings Inc's profitability ratios have shown varying trends over the past five years.
- Gross profit margin has gradually decreased from 20.86% in 2020 to 16.99% in 2024, indicating a decline in the percentage of revenue retained after deducting the cost of goods sold.
- Operating profit margin initially increased slightly from 8.68% in 2020 to 8.84% in 2021 but then significantly dropped to 4.35% in 2024, suggesting a decline in efficiency in managing operating expenses.
- Pretax margin experienced fluctuations, reaching a peak of 7.01% in 2021 before dropping to -1.16% in 2023 and then recovering to 2.69% in 2024. This indicates significant volatility in the proportion of pre-tax income relative to total revenue.
- Net profit margin followed a similar pattern, with a peak of 5.69% in 2021, but then declining to -1.79% in 2023 and recovering slightly to 1.13% in 2024. This suggests that after deducting all expenses, the company's bottom-line profitability has been inconsistent.
Overall, the decreasing trend in gross profit margin and the fluctuating patterns in operating, pretax, and net profit margins reflect challenges in maintaining profitability and controlling costs over the years. This analysis indicates the need for Ultra Clean Holdings Inc to closely monitor and manage its profit margins to ensure sustainable financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.75% | 1.88% | 6.14% | 9.17% | 11.01% |
| Return on assets (ROA) | 1.23% | -1.67% | 2.06% | 5.90% | 7.04% |
| Return on total capital | 6.76% | 2.20% | 8.13% | 12.45% | 14.33% |
| Return on equity (ROE) | 2.71% | -3.71% | 4.55% | 14.08% | 14.57% |
Ultra Clean Holdings Inc's profitability ratios have shown a declining trend over the period from December 31, 2020, to December 31, 2024.
- Operating Return on Assets (Operating ROA) decreased from 11.01% in 2020 to 4.75% in 2024, indicating a decreasing efficiency in generating operating profits from its assets over the years.
- Return on Assets (ROA) also fell from 7.04% in 2020 to 1.23% in 2024, reflecting a decline in the company's overall profitability in relation to its total assets.
- Return on Total Capital decreased from 14.33% in 2020 to 6.76% in 2024, showing a declining ability of the company to generate returns for both equity and debt holders.
- Return on Equity (ROE) dropped from 14.57% in 2020 to 2.71% in 2024, signifying a decreasing return for the company's shareholders over the period.
Overall, the decreasing profitability ratios suggest that Ultra Clean Holdings Inc's ability to generate profits from its assets, capital, and equity has weakened, which may raise concerns about its operational efficiency and financial performance in the recent years.