Onto Innovation Inc (ONTO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 8.69 | 10.07 | 9.33 | 9.06 | 8.69 | 9.00 | 8.64 | 7.78 | 7.07 | 6.62 | 6.15 | 5.59 | 6.14 | 5.96 | 6.09 | 5.97 | 6.09 | 6.96 | 6.53 | 6.66 |
| Quick ratio | 6.82 | 7.66 | 6.90 | 6.62 | 6.26 | 6.18 | 5.82 | 3.93 | 4.92 | 3.26 | 3.08 | 2.93 | 3.31 | 4.32 | 4.40 | 4.23 | 4.35 | 4.85 | 4.55 | 4.68 |
| Cash ratio | 5.01 | 5.91 | 5.30 | 5.04 | 4.72 | 4.64 | 4.45 | 3.93 | 3.41 | 3.26 | 3.08 | 2.93 | 3.31 | 3.11 | 3.09 | 3.11 | 3.11 | 3.50 | 3.16 | 3.10 |
The current ratio of Onto Innovation Inc has been relatively stable over the past few years, ranging from 5.59 to 10.07. This indicates that the company has sufficient current assets to cover its current liabilities, with a ratio above 1 suggesting good short-term financial strength.
The quick ratio, which excludes inventory from current assets, shows a decreasing trend from 2.93 to 7.66. This indicates the company's ability to meet its short-term obligations using its most liquid assets, such as cash and marketable securities, has fluctuated but generally remained above 1.
The cash ratio, which focuses solely on cash and cash equivalents, has also shown variation but trended upwards from 2.93 to 5.91. This suggests the company has been improving its ability to cover its short-term obligations using only its most liquid assets.
Overall, Onto Innovation Inc has maintained strong liquidity ratios over the years, with adequate current assets to meet short-term liabilities. The downward trend in quick and cash ratios in recent periods may warrant further monitoring to ensure the company's ability to meet immediate financial obligations remains robust.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle for Onto Innovation Inc has shown fluctuations over the past few years. The cycle measures the time it takes for the company to convert its resources invested in inventory and accounts receivable into cash flows from sales.
From March 31, 2020, to June 30, 2021, the company saw a decreasing trend in its cash conversion cycle, indicating an improvement in managing its working capital. This was a positive sign as it indicated that the company was able to collect cash from its sales and manage its inventory efficiently.
However, from September 30, 2021, to June 30, 2024, the cash conversion cycle started increasing, indicating a potential inefficiency in managing its working capital. This increase could be due to issues such as delays in collecting accounts receivable or holding excess inventory, which tied up cash within the business.
The significant spike in the cash conversion cycle from September 30, 2023, to December 31, 2023, suggests that the company may have faced challenges in converting its resources into cash within a reasonable timeframe during that period.
Overall, Onto Innovation Inc should focus on optimizing its working capital management to ensure the cash conversion cycle remains at healthy levels, allowing the company to maintain liquidity and operate efficiently.