Onto Innovation Inc (ONTO)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 3.20 | 3.71 | 3.77 | 3.65 | 3.60 | 4.06 | 4.78 | — | 4.16 | — | — | — | — | 4.00 | 3.69 | 4.13 | 3.73 | 3.97 | 3.33 | 2.58 | |
| DSO | days | 113.92 | 98.28 | 96.75 | 100.09 | 101.36 | 89.94 | 76.41 | — | 87.65 | — | — | — | — | 91.34 | 98.95 | 88.39 | 97.89 | 91.91 | 109.51 | 141.50 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.20
= 113.92
The Days Sales Outstanding (DSO) ratio is a measure of how long it takes for a company to collect its accounts receivable. Looking at the historical trend of Onto Innovation Inc's DSO from March 31, 2020, to December 31, 2024, we observe fluctuations in the number of days it takes the company to collect its sales.
From March 31, 2020, to June 30, 2020, there was a significant decrease in DSO from 141.50 days to 109.51 days, indicating an improvement in the company's collections efficiency. Subsequently, the DSO continued to decline steadily until March 31, 2021, reaching its lowest point at 88.39 days, demonstrating efficient accounts receivable management.
However, there was a slight increase in DSO by June 30, 2021, which may suggest some challenges in collections or changes in customer payment behavior. The ratio remained relatively stable until September 30, 2021, at 91.34 days.
The absence of data for the latter part of 2021 and the first half of 2022 limits our ability to analyze the company's recent performance in terms of DSO. However, the DSO was reported as 87.65 days on December 31, 2022, indicating a reasonable collection period.
Looking ahead to the projected DSO figures, from June 30, 2023, to December 31, 2024, we see fluctuations in the collection days, with values ranging from 76.41 days to 113.92 days. The increase in DSO towards the end of the period may indicate challenges with collections efficiency.
Overall, analyzing Onto Innovation Inc's DSO provides insights into the company's effectiveness in managing accounts receivable and the efficiency of its collection processes. Tracking DSO over time can help assess the company's financial health and identify areas for improvement in managing working capital.
Peer comparison
Dec 31, 2024