Ultra Clean Holdings Inc (UCTT)

Solvency ratios

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
Debt-to-assets ratio 0.25 0.25 0.25 0.25 0.25 0.26 0.00 0.00 0.26 0.28 0.31 0.22 0.24 0.26 0.29 0.30 0.28 0.30 0.33 0.32
Debt-to-capital ratio 0.35 0.36 0.35 0.35 0.36 0.37 0.00 0.00 0.38 0.41 0.43 0.32 0.33 0.35 0.41 0.42 0.39 0.41 0.43 0.43
Debt-to-equity ratio 0.55 0.55 0.55 0.54 0.56 0.59 0.00 0.00 0.62 0.68 0.75 0.47 0.49 0.55 0.68 0.73 0.65 0.69 0.75 0.75
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

The solvency ratios of Ultra Clean Holdings Inc provide insights into the company's ability to meet its long-term debt obligations.

The debt-to-assets ratio has remained relatively stable at around 0.25 over the past year, indicating that 25% of the company's assets are financed by debt. This suggests a conservative level of leverage, which is generally favorable for financial stability.

The debt-to-capital ratio has also shown consistency, hovering around 0.35, implying that 35% of the company's capital structure is comprised of debt. This ratio indicates a balanced mix of debt and equity financing.

The debt-to-equity ratio has exhibited more variability, ranging from 0.54 to 0.75. This ratio reflects the proportion of debt relative to shareholders' equity, and the increasing trend observed indicates a higher reliance on debt financing compared to equity.

The financial leverage ratio has fluctuated within a narrow range, with values between 2.07 and 2.41. This ratio measures the company's debt relative to its equity and indicates the extent to which the company utilizes debt to finance its operations. The consistency of this ratio suggests a stable financial structure but with a moderate level of debt leverage.

Overall, the solvency ratios of Ultra Clean Holdings Inc demonstrate a conservative approach to debt management, with a balanced capital structure. However, the increasing trend in the debt-to-equity ratio warrants monitoring to ensure sustainable financial health.

Coverage ratios

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
Interest coverage 0.59 1.56 2.31 2.07 3.31 4.15 5.12 6.62 7.09 6.72 6.98 8.52 6.73 4.28 2.73 1.51 1.02 1.33 1.25 2.57

The interest coverage ratio for Ultra Clean Holdings Inc shows the ability of the company to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt and has a lower risk of default.

From the data provided, we observe fluctuations in Ultra Clean Holdings' interest coverage over time. The ratio was highest at 8.52 in March 2021 and lowest at 0.59 in December 2023. The trend shows some volatility, with periods of both increasing and decreasing interest coverage.

Overall, Ultra Clean Holdings Inc's interest coverage has generally been above 1, indicating that the company has generated enough operating income to cover its interest expenses. However, the declining trend in recent periods, particularly the decrease from 8.52 in March 2021 to 0.59 in December 2023, may raise concerns about the company's ability to cover its interest obligations in the future.

Investors and creditors should continue to monitor Ultra Clean Holdings' interest coverage ratio to assess the company's financial health and ability to manage its debt effectively.