Ultra Clean Holdings Inc (UCTT)

Debt-to-assets ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 476,500 461,200 493,000 529,900 261,600
Total assets US$ in thousands 1,919,900 1,867,700 1,960,900 2,025,400 1,102,500
Debt-to-assets ratio 0.25 0.25 0.25 0.26 0.24

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $476,500K ÷ $1,919,900K
= 0.25

Ultra Clean Holdings Inc's debt-to-assets ratio has been relatively stable over the past five years, ranging from 0.24 to 0.26. This ratio indicates that, on average, the company has used approximately 25% of its total assets to finance its debt obligations. A lower debt-to-assets ratio suggests lower financial risk and indicates that the company relies less on debt to fund its operations. In this case, the company's consistent ratio around 0.25 demonstrates a balanced approach to managing its debt levels relative to its asset base.