Ultra Clean Holdings Inc (UCTT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 91,200 | 28,600 | 112,200 | 171,600 | 113,800 |
| Long-term debt | US$ in thousands | 476,500 | 461,200 | 493,000 | 529,900 | 261,600 |
| Total stockholders’ equity | US$ in thousands | 873,600 | 838,900 | 887,900 | 848,900 | 532,600 |
| Return on total capital | 6.76% | 2.20% | 8.13% | 12.45% | 14.33% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $91,200K ÷ ($476,500K + $873,600K)
= 6.76%
Ultra Clean Holdings Inc's return on total capital has shown a fluctuating trend over the past five years. Starting at 14.33% in December 2020, it decreased to 12.45% in December 2021, indicating a slight decline in profitability. The trend continued downward with a more significant drop to 8.13% in December 2022, suggesting potential challenges in efficiently utilizing capital to generate returns.
By December 2023, the return on total capital decreased sharply to 2.20%, signaling a notable decrease in the company's profitability and efficiency in deploying its capital. However, there was a slight improvement in December 2024, with the return on total capital rising to 6.76%.
Overall, the declining trend in Ultra Clean Holdings Inc's return on total capital over the five-year period indicates potential challenges in generating returns relative to the total capital employed, which may require closer examination and potential strategic adjustments to enhance financial performance.
Peer comparison
Dec 31, 2024