Onto Innovation Inc (ONTO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 212,945 | 233,508 | 175,872 | 169,602 | 136,720 |
| Short-term investments | US$ in thousands | 639,383 | 464,303 | 371,912 | 341,741 | 237,002 |
| Total current liabilities | US$ in thousands | 170,089 | 147,726 | 160,558 | 154,526 | 120,091 |
| Cash ratio | 5.01 | 4.72 | 3.41 | 3.31 | 3.11 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($212,945K
+ $639,383K)
÷ $170,089K
= 5.01
The cash ratio for Onto Innovation Inc has shown a consistent increase over the past five years, starting at 3.11 in December 2020 and gradually rising to 5.01 by December 2024. This indicates that the company's ability to cover its short-term obligations solely with its cash and cash equivalents has improved significantly over the period under review. A higher cash ratio generally signifies a stronger liquidity position and lower risk of default on its immediate payment obligations. Onto Innovation's increasing cash ratio reflects prudence in managing its liquid assets, providing a cushion against unexpected financial challenges and enhancing its overall financial health.
Peer comparison
Dec 31, 2024