Ultra Clean Holdings Inc (UCTT)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 91,200 35,200 120,400 185,700 121,400
Revenue US$ in thousands 2,097,600 1,734,500 2,374,300 2,101,600 1,398,600
Operating profit margin 4.35% 2.03% 5.07% 8.84% 8.68%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $91,200K ÷ $2,097,600K
= 4.35%

Ultra Clean Holdings Inc's operating profit margin has displayed fluctuations over the years. In December 31, 2020, the operating profit margin was 8.68%, slightly increasing to 8.84% by December 31, 2021. However, there was a notable decrease to 5.07% by December 31, 2022, which further dropped to 2.03% by December 31, 2023. The operating profit margin showed a slight recovery to 4.35% by December 31, 2024.

The downward trend in the operating profit margin from 2021 to 2023 may indicate challenges faced by the company, such as cost management issues or pricing pressures. It is essential for Ultra Clean Holdings Inc to closely monitor and address the factors impacting their operating profit margin to improve profitability and ensure long-term sustainability.