Ultra Clean Holdings Inc (UCTT)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	35,200	120,400	185,700	121,400	29,900
Revenue	US$ in thousands	1,734,500	2,374,300	2,101,600	1,398,600	1,066,200
Operating profit margin		2.03%	5.07%	8.84%	8.68%	2.80%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $35,200K ÷ $1,734,500K
= 2.03%

Ultra Clean Holdings Inc's operating profit margin has shown some fluctuations over the past five years. The margin has decreased from 8.68% in 2020 to 2.03% in 2023, indicating a decline in profitability. This downward trend suggests that the company may be facing challenges in controlling its operating expenses or generating sufficient revenue to cover these costs. The relatively low operating profit margin in 2023 compared to previous years could be a cause for concern as it may impact the company's overall financial performance and ability to generate returns for its stakeholders. Further analysis of the company's cost structure and revenue sources may be necessary to understand the factors driving this decline in operating profit margin.