Ultra Clean Holdings Inc (UCTT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	838,900	887,900	848,900	532,600	436,700
ROE		-3.71%	4.55%	14.08%	14.57%	-2.15%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-31,100K ÷ $838,900K
= -3.71%

Ultra Clean Holdings Inc's Return on Equity (ROE) has been fluctuating in recent years. In 2023, the ROE was negative at -3.71%, indicating that the company's net income was insufficient to generate a positive return for shareholders relative to their equity investment. This decline is a notable contrast to the positive ROEs seen in the preceding years.

In 2022, the ROE stood at 4.55%, reflecting a moderate return on equity for shareholders. However, compared to the previous year, the ROE had decreased, suggesting a potential decrease in the company's profitability or efficiency in utilizing shareholders' equity.

In 2021, Ultra Clean Holdings Inc exhibited a healthier ROE of 14.08%, signaling a strong return on equity for shareholders. This performance was consistent with the ROE of 14.57% in 2020, indicating sustained profitability and efficient utilization of equity during those years.

In 2019, the company experienced a negative ROE of -2.15%, highlighting a period of financial distress or inefficiency in generating returns for shareholders.

Overall, the analysis of Ultra Clean Holdings Inc's ROE indicates varying levels of financial performance and shareholder value creation over the five-year period. It is essential for stakeholders to further investigate the underlying factors contributing to these fluctuations in ROE to assess the company's financial health and future prospects accurately.