Ultra Clean Holdings Inc (UCTT)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 1,919,900 1,867,700 1,960,900 2,025,400 1,102,500
Total stockholders’ equity US$ in thousands 873,600 838,900 887,900 848,900 532,600
Financial leverage ratio 2.20 2.23 2.21 2.39 2.07

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,919,900K ÷ $873,600K
= 2.20

The financial leverage ratio of Ultra Clean Holdings Inc has been fairly stable over the past five years, ranging from 2.07 in 2020 to 2.39 in 2021, then moderating to 2.21 in 2022, 2.23 in 2023, and finally settling at 2.20 in 2024. This indicates that the company's level of financial leverage, which measures the proportion of debt in its capital structure, has been consistent within a relatively narrow range, suggesting a balanced approach to utilizing debt to finance its operations and growth initiatives.