Onto Innovation Inc (ONTO)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 7.48 | 5.58 | 5.34 | 5.24 |
| Quick ratio | 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 | 5.18 | 4.04 | 3.86 | 3.84 |
| Cash ratio | 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 | 3.73 | 2.89 | 2.85 | 2.94 |
Onto Innovation Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.
The current ratio has shown a consistent upward trend, indicating an increasing ability to cover short-term liabilities with current assets. This trend suggests that the company is in a strong position to meet its current obligations.
The quick ratio, which excludes inventory from current assets, has also improved over time. This ratio provides a more conservative measure of liquidity, as it reflects the ability to meet short-term liabilities without relying on selling inventory. Onto Innovation Inc's quick ratio has generally improved, indicating a strong ability to cover short-term obligations with its most liquid assets.
The cash ratio, which is the most stringent measure of liquidity and only includes cash and cash equivalents in the calculation, has also shown consistency over time. This ratio provides insight into the company's immediate ability to cover its short-term liabilities. Onto Innovation Inc's cash ratio remains at a healthy level, reflecting a solid liquidity position.
Overall, Onto Innovation Inc appears to have a solid liquidity position based on its current, quick, and cash ratios. The increasing trend in these ratios indicates an improving ability to meet short-term obligations with its liquid assets.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Onto Innovation Inc has exhibited fluctuations over the historical periods analyzed. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital.
In the recent period analyzed, the cash conversion cycle for Onto Innovation Inc was 357.75 days at the end of December 2023. This indicates that the company takes approximately 357.75 days to convert its investments in inventory and other resources into cash from sales.
Comparing this figure to prior periods, we observe fluctuations in the company's efficiency in managing its working capital. For instance, the cash conversion cycle was significantly shorter at 197.07 days at the end of September 2022, but increased to a peak of 464.54 days at the end of December 2019. This variability suggests fluctuations in the company's ability to efficiently manage its cash flows and working capital over time.
It is important for Onto Innovation Inc to monitor and improve its cash conversion cycle to ensure optimal utilization of resources and efficiency in its operations. The management should focus on streamlining inventory management, improving accounts receivable collection, and optimizing accounts payable processes to shorten the cash conversion cycle and enhance cash flow management.