Onto Innovation Inc (ONTO)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 815,868 | 1,005,180 | 788,899 | 556,496 | 305,896 |
| Receivables | US$ in thousands | 226,556 | 241,395 | — | 149,251 | 123,656 |
| Receivables turnover | 3.60 | 4.16 | — | 3.73 | 2.47 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $815,868K ÷ $226,556K
= 3.60
The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period. Onto Innovation Inc's receivables turnover has fluctuated over the past five years. In 2023, the receivables turnover was 3.60, which indicates that the company collected its outstanding receivables approximately 3.6 times during the year. This represents a decrease from the previous year's ratio of 4.16.
The downward trend in the receivables turnover ratio from 2022 to 2023 may suggest that Onto Innovation Inc took longer to collect its accounts receivable in 2023 compared to 2022. A lower receivables turnover ratio could indicate potential issues with the company's credit policies, collection procedures, or the quality of its customers.
It is worth noting that there is missing data for 2021 in the table, but based on the available information, Onto Innovation Inc's receivables turnover appears to have improved from 2019 to 2022 before declining in 2023. Further analysis, including an examination of the company's industry benchmarks and trends, would provide a more comprehensive understanding of Onto Innovation Inc's performance in managing its accounts receivable.
Peer comparison
Dec 31, 2023