Onto Innovation Inc (ONTO)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 815,868 | 850,282 | 897,350 | 962,998 | 1,005,183 | 977,557 | 923,893 | 860,970 | 788,899 | 718,383 | 644,286 | 585,847 | 556,496 | 521,926 | 458,369 | 384,932 | 305,896 | 248,118 | 245,615 | 272,659 |
| Total current assets | US$ in thousands | 1,283,270 | 1,221,200 | 1,183,040 | 1,155,100 | 1,134,870 | 1,122,640 | 1,085,630 | 1,032,240 | 948,089 | 885,474 | 811,629 | 754,828 | 731,661 | 676,721 | 644,912 | 628,519 | 641,664 | 278,285 | 272,179 | 264,369 |
| Total current liabilities | US$ in thousands | 147,726 | 135,758 | 136,937 | 148,418 | 160,558 | 169,553 | 176,667 | 184,679 | 154,526 | 148,617 | 133,168 | 126,412 | 120,091 | 97,231 | 98,715 | 94,328 | 85,743 | 49,831 | 50,955 | 50,407 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $815,868K ÷ ($1,283,270K – $147,726K)
= 0.72
The working capital turnover ratio for Onto Innovation Inc has been fluctuating over the past five years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A lower ratio indicates that the company is taking longer to convert its working capital into sales, while a higher ratio suggests better efficiency in using working capital.
From the data provided, we can observe that the working capital turnover ratio has generally been decreasing over the past five years. The ratio decreased from 1.27 in March 2019 to 0.72 in December 2019, before gradually increasing to 1.03 in December 2022. However, the ratio started to decline again, reaching 0.72 in December 2023.
The fluctuation in the working capital turnover ratio may indicate changes in the company's operational efficiency and effectiveness in managing its working capital. A declining ratio could suggest inefficiencies in utilizing working capital or potential challenges in converting assets into sales. Additionally, a consistent decrease in the ratio over time may warrant further investigation into the company's liquidity management practices and overall financial health.
Peer comparison
Dec 31, 2023