Ultra Clean Holdings Inc (UCTT)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,867,700	1,960,900	2,025,400	1,102,500	1,019,300
Operating ROA		1.88%	6.14%	9.17%	11.01%	2.93%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $35,200K ÷ $1,867,700K
= 1.88%

The operating return on assets (ROA) for Ultra Clean Holdings Inc has fluctuated over the past five years, based on the data provided. In 2023, the operating ROA decreased to 1.88% from 6.14% in 2022, which was a significant drop. This decline may indicate a potential decrease in the company's ability to generate operating profit from its assets efficiently.

Comparing the 2023 operating ROA to the previous years, it is notably lower than the 5-year high of 11.01% in 2020. This suggests a diminishing trend in the company's operating efficiency and profitability in recent years. The operating ROA was also lower than the 2019 figure of 2.93%, indicating a decline after a slight improvement in 2022.

Overall, the decreasing trend in Ultra Clean Holdings Inc's operating ROA from 2020 to 2023 raises concerns about the company's operational effectiveness in generating profit from its assets. Further analysis of the company's operational efficiency and asset utilization may be necessary to address the decline in operating ROA and identify potential areas for improvement.