Onto Innovation Inc (ONTO)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 472,014 | 451,373 | 435,875 | 411,985 | 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 |
| Inventory | US$ in thousands | 286,979 | 308,304 | 319,712 | 329,517 | 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 |
| Inventory turnover | 1.64 | 1.46 | 1.36 | 1.25 | 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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $472,014K ÷ $286,979K
= 1.64
Onto Innovation Inc's inventory turnover has shown variability over the reported periods. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced over a specific period.
From March 31, 2020, to December 31, 2021, the inventory turnover ratio increased steadily from 1.37 to 1.48, suggesting an improvement in inventory management efficiency. However, there was a slight decrease to 1.44 by the end of December 31, 2022.
Subsequently, there was a more significant decline in inventory turnover from March 31, 2023, to June 30, 2024, dropping from 1.33 to 1.36. This indicates a potential slowdown in sales relative to the level of inventory held during that period.
The inventory turnover ratio saw a notable increase by the end of December 31, 2024, reaching 1.64, which could be indicative of a more efficient inventory management strategy or an increase in sales volume relative to inventory levels.
Overall, while the company has experienced fluctuations in its inventory turnover ratio, it is essential for Onto Innovation Inc to monitor its inventory levels closely to ensure optimal utilization and management of its inventory resources.
Peer comparison
Dec 31, 2024
Dec 31, 2024