Onto Innovation Inc (ONTO)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 3.60 4.06 4.78 — 4.16 — — — — 4.00 3.69 4.13 3.73 3.97 3.33 2.58 2.47 4.36 4.76 6.03
Payables turnover 7.93 9.01 8.38 8.38 8.55 7.06 5.92 5.53 6.75 6.64 6.51 6.13 6.92 7.45 7.37 6.81 6.16 3.36 2.90 4.35
Working capital turnover 0.72 0.78 0.86 0.96 1.03 1.03 1.02 1.02 0.99 0.97 0.95 0.93 0.91 0.90 0.84 0.72 0.55 1.09 1.11 1.27

Onto Innovation Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio has been fluctuating over the periods, indicating variations in how quickly the company is selling its inventory.
- The decreasing trend from Dec 2019 to Mar 2020 followed by an increase until Dec 2022 could suggest more effective inventory management or changes in sales patterns.

2. Receivables Turnover:
- The receivables turnover ratio reflects the efficiency of the company in collecting payments from its customers.
- There is a general increasing trend in this ratio over time, indicating that Onto Innovation has been able to collect receivables more efficiently since Mar 2019.

3. Payables Turnover:
- The payables turnover ratio reveals how quickly the company pays its suppliers.
- Onto Innovation has shown some fluctuations in the payables turnover ratio, but overall, there is a trend towards more frequent payments to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how well the company is utilizing its working capital to generate sales.
- The ratio has been fluctuating over the periods but generally shows a decrease from Dec 2019 to Mar 2020, followed by a gradual increase until Sep 2021, suggesting changes in the company's sales and working capital management strategies.

Overall, it is essential for Onto Innovation Inc to monitor these activity ratios consistently to ensure optimal efficiency in its operations and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 302.41 315.17 309.03 274.55 254.02 248.74 239.54 245.31 246.61 240.25 248.41 262.30 251.02 241.80 247.85 267.22 376.25 431.70 430.61 281.81
Days of sales outstanding (DSO) days 101.36 89.94 76.41 — 87.65 — — — — 91.34 98.95 88.39 97.89 91.91 109.51 141.50 147.55 83.81 76.68 60.58
Number of days of payables days 46.01 40.50 43.54 43.57 42.71 51.67 61.67 66.00 54.11 54.97 56.03 59.57 52.75 49.00 49.50 53.60 59.25 108.66 125.76 83.92

Onto Innovation Inc's activity ratios provide insight into how efficiently the company manages its inventory, extends credit to customers, and pays its suppliers.

Days of inventory on hand (DOH) increased from 254.02 days in December 2022 to 302.41 days in December 2023. This indicates that the company is holding inventory for a longer period, which could tie up capital and increase storage costs.

Days of sales outstanding (DSO) improved from 87.65 days in December 2022 to 101.36 days in December 2023. This suggests that the company is collecting receivables faster, which is positive as it indicates effective credit management and improved cash flow.

Number of days of payables decreased from 42.71 days in December 2022 to 46.01 days in December 2023. This may signify that the company is taking longer to pay its suppliers, potentially enhancing its working capital position.

Overall, Onto Innovation Inc should continue to monitor and manage its activity ratios to ensure optimal efficiency in managing its working capital and operational performance.

Long-term

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
Fixed asset turnover 7.87 8.16 8.98 9.86 10.93 11.60 11.13 10.54 9.61 8.38 7.32 6.68 6.05 5.63 4.80 3.97 3.11 4.73 4.65 5.40
Total asset turnover 0.43 0.46 0.49 0.53 0.56 0.55 0.52 0.50 0.48 0.45 0.42 0.39 0.38 0.36 0.32 0.27 0.21 0.63 0.63 0.71

Onto Innovation Inc's fixed asset turnover has shown a decreasing trend over the past five years, indicating that the company is generating less revenue per dollar of fixed assets invested. This could be a concern as it may suggest inefficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable over the same period, with a slight increase in recent quarters. This suggests that the company is effectively utilizing its total assets to generate sales revenue. However, the overall asset turnover is relatively low, indicating that Onto Innovation Inc may have a large amount of assets relative to its sales volume.

In conclusion, while the total asset turnover ratio indicates efficient use of total assets, the decreasing trend in fixed asset turnover raises concerns about the company's ability to maximize revenue generation from its fixed assets. Management should further analyze operational efficiency and consider strategies to optimize the utilization of fixed assets to improve overall profitability.