Onto Innovation Inc (ONTO)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 221.92 | 249.31 | 267.73 | 291.94 | 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 |
| Days of sales outstanding (DSO) | days | 113.92 | 98.28 | 96.75 | 100.09 | 101.36 | 89.94 | 76.41 | — | 87.65 | — | — | — | — | 91.34 | 98.95 | 88.39 | 97.89 | 91.91 | 109.51 | 141.50 |
| Number of days of payables | days | 43.51 | 38.80 | 43.02 | 49.53 | 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 |
| Cash conversion cycle | days | 292.33 | 308.79 | 321.46 | 342.50 | 357.75 | 364.61 | 341.90 | 230.98 | 298.96 | 197.07 | 177.87 | 179.32 | 192.50 | 276.61 | 291.33 | 291.13 | 296.16 | 284.71 | 307.87 | 355.11 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 221.92 + 113.92 – 43.51
= 292.33
The cash conversion cycle of Onto Innovation Inc has shown fluctuations over the reporting periods provided. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2022, the company experienced a decreasing trend in the cash conversion cycle, indicating improvements in managing inventory, accounts receivable, and accounts payable to free up cash flow. However, from March 31, 2023, to December 31, 2024, there was an increase in the cash conversion cycle, suggesting potential challenges in liquidity management.
It is important for Onto Innovation Inc to closely monitor and manage its cash conversion cycle to ensure efficient utilization of resources and sustained cash flow generation. Further analysis and action may be required to address any inefficiencies in inventory management, accounts receivable collection, and accounts payable payment to optimize the cash conversion cycle over time.
Peer comparison
Dec 31, 2024