Onto Innovation Inc (ONTO)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.21 | 1.16 | 1.18 | 1.33 | 1.44 | 1.47 | 1.52 | 1.49 | 1.48 | 1.52 | 1.47 | 1.39 | 1.45 | 1.51 | 1.47 | 1.37 | 0.97 | 0.85 | 0.85 | 1.30 | |
| DOH | days | 302.41 | 315.17 | 309.03 | 274.55 | 254.02 | 248.74 | 239.54 | 245.31 | 246.61 | 240.25 | 248.41 | 262.30 | 251.02 | 241.80 | 247.85 | 267.22 | 376.25 | 431.70 | 430.61 | 281.81 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.21
= 302.41
The days of inventory on hand (DOH) for Onto Innovation Inc has fluctuated over the past few quarters, indicating potential inventory management challenges.
The trend shows that the DOH has been relatively high, peaking at 431.70 days in September 2019 and staying elevated above 200 days for several quarters thereafter. This suggests that the company may be holding excessive levels of inventory, which could tie up capital and potentially lead to obsolescence or carrying costs.
However, there seems to be some improvement in inventory management as the DOH has decreased in more recent quarters, dropping to 254.02 days in December 2022 and further down to 274.55 days in March 2023. This suggests that the company may be working towards optimizing their inventory levels and improving efficiency in this area.
Overall, the company should continue to monitor and fine-tune its inventory management practices to strike a balance between having enough inventory to meet demand and minimizing excess inventory holdings to improve cash flow and overall operational efficiency.
Peer comparison
Dec 31, 2023