Ultra Clean Holdings Inc (UCTT)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-31,100	40,400	119,500	77,600	-9,400
Total assets	US$ in thousands	1,867,700	1,960,900	2,025,400	1,102,500	1,019,300
ROA		-1.67%	2.06%	5.90%	7.04%	-0.92%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-31,100K ÷ $1,867,700K
= -1.67%

Ultra Clean Holdings Inc's return on assets (ROA) has shown a declining trend over the past five years, with figures of 7.04% in 2020, 5.90% in 2021, 2.06% in 2022, and -1.67% in 2023. This negative ROA in 2023 indicates that the company's ability to generate profit from its assets has deteriorated significantly.

The decreasing ROA suggests that the company may be facing challenges in utilizing its assets efficiently to generate earnings. It could be due to various factors such as declining sales, increasing expenses, or ineffective asset management.

Investors and analysts may be concerned about the declining trend in ROA as it indicates a decrease in the company's profitability relative to its assets. Further analysis is warranted to understand the underlying reasons for this decline and to assess the company's overall financial health and performance.