Ultra Clean Holdings Inc (UCTT)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	23,700	-31,100	40,400	119,500	77,600
Total stockholders’ equity	US$ in thousands	873,600	838,900	887,900	848,900	532,600
ROE		2.71%	-3.71%	4.55%	14.08%	14.57%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $23,700K ÷ $873,600K
= 2.71%

Ultra Clean Holdings Inc's return on equity (ROE) has shown some variation over the years. In December 2020, the ROE stood at a respectable 14.57%, indicating that the company was generating a good return for its shareholders based on their equity investment.

However, by December 2021, the ROE had slightly decreased to 14.08%, showing a slight decline in the company's efficiency in utilizing shareholder's equity to generate profits.

In December 2022, the ROE dropped significantly to 4.55%, suggesting a notable decrease in the company's ability to generate profits from the shareholders' equity.

By December 2023, the ROE turned negative, standing at -3.71%, indicating that the company was operating at a loss in relation to the equity invested by shareholders. This is a concerning trend that indicates the company may be facing challenges in generating profits or managing its resources effectively.

In December 2024, there was a slight improvement in the ROE, which increased to 2.71%. While this is an improvement from the negative ROE in the previous year, it still indicates that the company is not generating significant returns from the equity invested by shareholders.

Overall, Ultra Clean Holdings Inc's ROE has shown a downward trend over the years, with profitability and efficiency challenges evident in recent periods. This trend may raise concerns among investors and stakeholders about the company's financial performance and future outlook.