Ultra Clean Holdings Inc (UCTT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,919,900 | 1,867,700 | 1,960,900 | 2,025,400 | 1,102,500 |
| Operating ROA | 4.75% | 1.88% | 6.14% | 9.17% | 11.01% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $91,200K ÷ $1,919,900K
= 4.75%
Ultra Clean Holdings Inc's operating return on assets (operating ROA) has exhibited a declining trend over the past five years. Starting at 11.01% on December 31, 2020, the operating ROA decreased to 9.17% by December 31, 2021, and further dropped to 6.14% by December 31, 2022. The trend continued downward with operating ROA decreasing to 1.88% on December 31, 2023. However, there was a slight improvement in operating ROA to 4.75% by December 31, 2024.
The declining trend in operating ROA suggests a potential decrease in the company's ability to generate profits from its assets through its core operations over the period. This could be influenced by factors such as decreasing operational efficiency, increasing costs relative to revenue, or declining asset productivity.
It is important for Ultra Clean Holdings Inc to closely monitor and address the factors contributing to the decline in operating ROA to ensure sustainable profitability and operational effectiveness in the future.
Peer comparison
Dec 31, 2024