Onto Innovation Inc (ONTO)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 395,614 | 465,962 | 359,813 | 278,043 | 170,868 |
| Payables | US$ in thousands | 49,869 | 54,526 | 53,345 | 40,183 | 27,738 |
| Payables turnover | 7.93 | 8.55 | 6.75 | 6.92 | 6.16 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $395,614K ÷ $49,869K
= 7.93
The payables turnover ratio of Onto Innovation Inc has shown some variability over the past five years. The ratio decreased from 6.16 in 2019 to 6.75 in 2021, before dropping further to 6.92 in 2020. However, there was a notable increase to 8.55 in 2022, followed by a slight decrease to 7.93 in 2023.
A higher payables turnover ratio indicates that the company is more efficient in paying off its suppliers relative to its purchases. Onto Innovation Inc's ratios above 6 over the years suggest that the company is managing its accounts payable effectively.
The fluctuations in the payables turnover ratio can be influenced by factors such as changes in payment terms negotiated with suppliers, changes in the company's purchasing volumes, or changes in the company's overall financial health.
Overall, the trend in Onto Innovation Inc's payables turnover ratios indicates that the company has been effectively managing its payables over the years, with some fluctuations observed in recent years.
Peer comparison
Dec 31, 2023