Ultra Clean Holdings Inc (UCTT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,867,700	1,960,900	2,025,400	1,102,500	1,019,300
Total stockholders’ equity	US$ in thousands	838,900	887,900	848,900	532,600	436,700
Financial leverage ratio		2.23	2.21	2.39	2.07	2.33

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,867,700K ÷ $838,900K
= 2.23

Ultra Clean Holdings Inc's financial leverage ratio has fluctuated over the past five years, ranging from a high of 2.39 in 2021 to a low of 2.07 in 2020. The financial leverage ratio measures the proportion of the company's debt to its equity, indicating the level of financial risk the company carries.

A financial leverage ratio of 2.23 in 2023 indicates that for every dollar of equity, the company has $2.23 in debt. This suggests that Ultra Clean Holdings Inc relies more on debt financing rather than equity to fund its operations and growth.

The trend in the financial leverage ratio over the past five years indicates some volatility and variability in the company's capital structure. It is important for investors and creditors to closely monitor changes in the financial leverage ratio as high levels of debt relative to equity can increase financial risk and impact the company's ability to meet its financial obligations.