Onto Innovation Inc (ONTO)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 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 | 464.54 | 406.84 | 381.54 | 258.46 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 302.41 + 101.36 – 46.01
= 357.75
The cash conversion cycle of Onto Innovation Inc has shown fluctuations over the analyzed period. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash inflows from sales.
Analyzing the trend of the cash conversion cycle, we can see that there was an increasing trend from March 2019 to December 2019, reaching a peak of 464.54 days. Subsequently, the cycle decreased significantly by March 2020 to 258.46 days, indicating enhanced efficiency in managing inventory and cash flows.
From March 2020 to December 2020, there was a fluctuating pattern in the cash conversion cycle. However, from March 2021 to June 2021, there was a noticeable increase, possibly indicating challenges in managing inventory and cash flow during that period.
From September 2021 to December 2023, the cash conversion cycle exhibited some volatility but generally remained within a range of around 230 to 364 days. It is essential for the company to monitor and manage its cash conversion cycle effectively to ensure optimal utilization of resources and maintain healthy cash flow levels.
Overall, the analysis of Onto Innovation Inc's cash conversion cycle suggests fluctuations in the efficiency of managing inventory and cash flows over the analyzed period, with periods of improvement and challenges.
Peer comparison
Dec 31, 2023