Onto Innovation Inc (ONTO)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 472,013 | 395,614 | 465,962 | 359,813 | 278,043 |
| Inventory | US$ in thousands | 286,979 | 327,773 | 324,282 | 243,108 | 191,217 |
| Inventory turnover | 1.64 | 1.21 | 1.44 | 1.48 | 1.45 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $472,013K ÷ $286,979K
= 1.64
The inventory turnover ratio of Onto Innovation Inc has shown a fluctuating trend over the past five years. It stood at 1.45 in December 31, 2020, slightly increased to 1.48 in December 31, 2021, dropped to 1.44 in December 31, 2022, experienced a significant decrease to 1.21 in December 31, 2023, and then rebounded to 1.64 in December 31, 2024.
A higher inventory turnover ratio generally indicates that the company is efficiently managing its inventory levels by selling goods more quickly. However, a very high ratio could also suggest potential stockouts or lost sales if demand exceeds supply.
On the other hand, a lower inventory turnover ratio may signal overstocking, obsolete inventory, or declining sales. It is important for the company to strike a balance in managing its inventory to optimize operational efficiency and profitability. Further analysis and comparison with industry benchmarks can provide more insights into the effectiveness of Onto Innovation Inc's inventory management practices.
Peer comparison
Dec 31, 2024