Onto Innovation Inc (ONTO)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 395,614 | 400,772 | 415,843 | 449,825 | 465,962 | 451,755 | 427,582 | 391,330 | 359,813 | 337,751 | 304,124 | 279,556 | 278,043 | 279,235 | 253,055 | 219,292 | 170,868 | 58,924 | 56,478 | 82,207 |
| Inventory | US$ in thousands | 327,773 | 346,055 | 352,073 | 338,358 | 324,282 | 307,864 | 280,613 | 263,008 | 243,108 | 222,311 | 206,981 | 200,896 | 191,217 | 184,981 | 171,836 | 160,543 | 176,134 | 69,691 | 66,630 | 63,470 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $395,614K ÷ $327,773K
= 1.21
Onto Innovation Inc's inventory turnover has exhibited some variability over the last five years, reflecting the company's efficiency in managing its inventory during different periods. The inventory turnover ratio measures how many times a company sells and replaces its inventory in a given timeframe.
The data shows that in recent quarters, Onto Innovation Inc's inventory turnover has been relatively stable, ranging between 1.16 and 1.33, with a slight decrease in the most recent quarter ending December 31, 2023. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a positive sign of efficiency and strong demand for its products.
However, the inventory turnover ratio for the quarter ending March 31, 2019, and December 31, 2019, was notably lower, at 0.97 and 0.85 respectively. This could suggest potential issues such as overstocking, slow-moving inventory, or weaker sales during those periods.
Overall, Onto Innovation Inc's inventory turnover trend indicates that the company has been reasonably efficient in managing its inventory levels, but fluctuations in the ratio highlight the importance of continuous monitoring and optimization of inventory management strategies to improve operational efficiency and financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023