Onto Innovation Inc (ONTO)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,283,270 | 1,134,870 | 948,089 | 731,661 | 641,664 |
| Total current liabilities | US$ in thousands | 147,726 | 160,558 | 154,526 | 120,091 | 85,743 |
| Current ratio | 8.69 | 7.07 | 6.14 | 6.09 | 7.48 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,283,270K ÷ $147,726K
= 8.69
Onto Innovation Inc's current ratio has exhibited a positive trend over the past five years, increasing from 7.48 in 2019 to 8.69 in 2023. This indicates the company's ability to meet its short-term obligations with its current assets has strengthened significantly over this period.
The current ratio surpasses 1, indicating that Onto Innovation Inc possesses more current assets than current liabilities, suggesting a healthy liquidity position. Moreover, the continued increase in the current ratio demonstrates efficient management of working capital, enabling the company to cover its short-term liabilities comfortably.
A high current ratio typically signifies a strong financial position, reflecting the company's ability to quickly turn its current assets into cash to cover immediate obligations. However, while a high current ratio is generally positive, it can also imply that the company is not efficiently utilizing its current assets to generate further growth opportunities or may have excess idle funds.
Overall, Onto Innovation Inc's current ratio indicates a robust liquidity position and efficient management of current assets and liabilities, contributing to a positive outlook for the company's financial health.
Peer comparison
Dec 31, 2023