Ultra Clean Holdings Inc (UCTT)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-20,200	26,200	57,200	41,900	78,200	93,600	112,100	151,800	147,400	122,400	111,300	115,000	96,900	61,600	36,800	12,400	600	13,316	7,512	26,807
Revenue (ttm)	US$ in thousands	1,734,500	1,856,200	2,056,200	2,243,400	2,374,200	2,422,900	2,341,600	2,248,100	2,101,600	1,856,100	1,665,700	1,495,300	1,398,600	1,315,400	1,206,400	1,127,000	1,066,200	1,037,200	1,017,000	1,041,800
Pretax margin		-1.16%	1.41%	2.78%	1.87%	3.29%	3.86%	4.79%	6.75%	7.01%	6.59%	6.68%	7.69%	6.93%	4.68%	3.05%	1.10%	0.06%	1.28%	0.74%	2.57%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-20,200K ÷ $1,734,500K
= -1.16%

The pretax margin of Ultra Clean Holdings Inc has shown fluctuations over the past five years, ranging from -1.16% to 7.69%. The pretax margin represents the company's profitability before taxes as a percentage of its total revenue. A lower pretax margin indicates that the company is less efficient in generating profits from its operations, while a higher pretax margin signifies better operational efficiency.

In recent quarters, the pretax margin has been on a downward trend, with a decrease from 2.78% in Jun 2023 to -1.16% in Dec 2023. This decline may indicate challenges in managing costs or lower revenue generation. However, it is worth noting that the pretax margin had shown relatively stable performance in the preceding quarters, ranging from 4.68% to 7.69%.

Further analysis of the company's cost structure, revenue streams, and operational efficiency may provide insights into the factors driving the fluctuations in the pretax margin. A detailed examination of the underlying causes of the changes in the pretax margin can help management make informed decisions to improve the company's profitability in the future.