Onto Innovation Inc (ONTO)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.20 | 3.60 | 4.16 | — | 3.73 | |
| DSO | days | 113.92 | 101.36 | 87.66 | — | 97.89 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.20
= 113.92
Onto Innovation Inc's Days of Sales Outstanding (DSO) is a critical metric that reflects the average number of days it takes for the company to collect payment after making a sale.
Based on the data provided:
- As of December 31, 2020, Onto Innovation Inc had a DSO of 97.89 days, indicating that on average, it took the company nearly 98 days to collect its accounts receivable.
- Unfortunately, the DSO for December 31, 2021, is not available in the data provided.
- By December 31, 2022, the DSO had improved to 87.66 days, implying that the company was able to collect payments more quickly.
- However, by December 31, 2023, the DSO increased to 101.36 days, suggesting a lengthening in the collection period compared to the previous year.
- The trend continued in December 31, 2024, with the DSO rising further to 113.92 days, signifying a potential challenge in collecting payments efficiently.
Overall, the analysis of the DSO trend indicates varying performance in managing accounts receivable collection over the years, with fluctuations in efficiency in converting sales into cash. Monitoring and potentially improving DSO can help Onto Innovation Inc enhance its cash flow management and overall financial health.
Peer comparison
Dec 31, 2024