Ultra Clean Holdings Inc (UCTT)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	1,867,700	1,845,500	1,843,700	1,865,900	1,960,900	1,956,000	1,945,400	2,011,600	2,025,400	1,924,000	1,846,700	1,190,600	1,102,500	1,060,300	1,102,500	1,072,200	1,019,300	1,019,300	1,008,960	1,019,300
Total stockholders’ equity	US$ in thousands	838,900	838,000	849,800	870,700	887,900	856,700	845,600	879,600	848,900	800,000	767,500	557,600	532,600	500,100	470,500	445,900	436,700	440,964	439,101	438,090
Financial leverage ratio		2.23	2.20	2.17	2.14	2.21	2.28	2.30	2.29	2.39	2.40	2.41	2.14	2.07	2.12	2.34	2.40	2.33	2.31	2.30	2.33

December 31, 2023 calculation

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

The financial leverage ratio of Ultra Clean Holdings Inc has shown some fluctuations over the periods analyzed. The ratio ranged between 2.07 and 2.41 during the past five years. It peaked at 2.41 in the second quarter of 2021 and reached its lowest point at 2.07 in the fourth quarter of 2020. Overall, the trend indicates a moderate level of financial leverage, with the company using debt as part of its capital structure. Investors and creditors may view this ratio as an indication of the company's reliance on debt financing, which could impact its financial stability and risk profile. A lower ratio generally indicates a conservative approach to debt, while a higher ratio suggests a more aggressive stance. It is essential for stakeholders to monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risks effectively.