Ultra Clean Holdings Inc (UCTT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 461,200 | 493,000 | 529,900 | 261,600 | 283,400 |
| Total assets | US$ in thousands | 1,867,700 | 1,960,900 | 2,025,400 | 1,102,500 | 1,019,300 |
| Debt-to-assets ratio | 0.25 | 0.25 | 0.26 | 0.24 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $461,200K ÷ $1,867,700K
= 0.25
Ultra Clean Holdings Inc's debt-to-assets ratio has remained relatively stable over the past five years, ranging from 0.24 to 0.28. This ratio indicates that the company's proportion of debt to total assets has been moderate, with around 25% to 28% of its assets financed by debt.
A debt-to-assets ratio of around 0.25 suggests that Ultra Clean Holdings Inc relies more on equity financing rather than debt financing to fund its operations and investments. This indicates a lower financial risk for the company as it has a lower dependency on debt.
The consistency in the ratio over the years indicates that the company has maintained a prudent approach to managing its debt levels in relation to its asset base. A stable debt-to-assets ratio can be seen as a positive sign of financial stability and sustainability for Ultra Clean Holdings Inc.
Peer comparison
Dec 31, 2023