Onto Innovation Inc (ONTO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 815,868 | 1,005,180 | 788,899 | 556,496 | 305,896 |
| Property, plant and equipment | US$ in thousands | 103,611 | 91,980 | 82,094 | 91,980 | 98,420 |
| Fixed asset turnover | 7.87 | 10.93 | 9.61 | 6.05 | 3.11 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $815,868K ÷ $103,611K
= 7.87
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Onto Innovation Inc, the fixed asset turnover has fluctuated over the past five years.
In 2023, Onto Innovation Inc achieved a fixed asset turnover of 7.87, indicating that for every dollar invested in fixed assets, the company generated $7.87 in sales revenue. This represents a decrease from the previous year's ratio of 10.93.
While the ratio decreased, the company's efficiency in utilizing fixed assets to generate revenue remains relatively high compared to earlier years. In 2021 and 2020, Onto Innovation Inc achieved fixed asset turnovers of 9.61 and 6.05, respectively, showcasing a consistent upward trend in efficiency.
The significant improvement in fixed asset turnover from 2019 to 2023, where the ratio more than doubled from 3.11 to 7.87, suggests that Onto Innovation Inc has become more adept at optimizing its fixed assets to drive sales growth. This improvement may reflect strategic investments in technology or operational efficiency measures that have enhanced the company's productivity and profitability.
Overall, while there was a slight decline in fixed asset turnover in 2023 compared to the previous year, Onto Innovation Inc's trend of increasing efficiency in utilizing fixed assets over the past five years is a positive indicator of the company's operational performance and management of its asset base.
Peer comparison
Dec 31, 2023