Ultra Clean Holdings Inc (UCTT)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.25 0.24 0.25 0.24 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
Debt-to-capital ratio 0.35 0.36 0.36 0.36 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
Debt-to-equity ratio 0.55 0.55 0.56 0.55 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
Financial leverage ratio 2.20 2.27 2.26 2.27 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

Ultra Clean Holdings Inc's solvency ratios show a positive trend over the years, indicating a strong financial position. The Debt-to-assets ratio has decreased steadily from 0.30 in March 2020 to 0.25 in December 2024, indicating that the company's total debt relative to its total assets has been declining.

Similarly, the Debt-to-capital ratio also exhibits a decreasing trend, dropping from 0.42 in March 2020 to 0.35 in December 2024. This ratio signifies the proportion of debt in relation to the company's total capital, including debt and equity.

The Debt-to-equity ratio has also shown a decline from 0.73 in March 2020 to 0.55 in December 2024, suggesting that the company has been reducing its reliance on debt financing in comparison to equity financing over the years.

Furthermore, the Financial leverage ratio has remained relatively stable around 2.20 to 2.40 during the period under review. This ratio indicates the company's ability to meet its financial obligations through its debt structure.

Overall, Ultra Clean Holdings Inc's solvency ratios demonstrate a positive trend, reflecting the company's improving ability to cover its debt obligations and maintain a healthy balance between debt and equity in its capital structure.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 4.47 1.97 1.01 0.60 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

Ultra Clean Holdings Inc's interest coverage ratio has shown fluctuations over the past several quarters. The interest coverage ratio is a measure of a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

From March 31, 2020, to June 30, 2021, the interest coverage ratio steadily increased from 1.51 to 6.98, indicating an improvement in the company's ability to cover its interest payments. This was a positive trend, suggesting that Ultra Clean Holdings Inc was generating sufficient earnings to comfortably service its debt.

However, from September 30, 2021, to December 31, 2024, the interest coverage ratio experienced a downward trend, fluctuating between 0.59 and 4.47. This indicates that the company's ability to cover its interest payments weakened during this period.

The decreasing trend in the interest coverage ratio from March 31, 2022, to December 31, 2024, may raise concerns about Ultra Clean Holdings Inc's financial health and its ability to meet its interest obligations. Investors and creditors may view a declining interest coverage ratio as a red flag that could potentially signal financial distress for the company.

It is important for stakeholders to monitor Ultra Clean Holdings Inc's interest coverage ratio closely in future quarters to assess any improvements or deteriorations in the company's ability to manage its debt and interest payments effectively.