Onto Innovation Inc (ONTO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.19% | 51.51% | 53.64% | 54.39% | 50.04% |
| Operating profit margin | 18.95% | 14.23% | 23.55% | 19.83% | -4.79% |
| Pretax margin | 22.33% | 16.25% | 24.03% | 19.73% | 4.83% |
| Net profit margin | 20.43% | 14.85% | 22.22% | 18.04% | 5.58% |
Onto Innovation Inc has shown consistent improvement in its gross profit margin over the years, starting at 50.04% in 2020 and reaching 52.19% in 2024. This indicates the company's ability to manage its production costs and generate profits from its core business operations.
The operating profit margin has also seen a positive trend, with the company moving from a negative margin of -4.79% in 2020 to 18.95% in 2024. This signifies an improvement in efficiency and cost management in the company's day-to-day operations.
Similarly, the pretax margin has shown steady growth, increasing from 4.83% in 2020 to 22.33% in 2024. This suggests Onto Innovation Inc's ability to generate profits before taxes efficiently and effectively manage its financial resources.
Lastly, the net profit margin has also improved over the years, climbing from 5.58% in 2020 to 20.43% in 2024. This indicates the company's ability to generate profits after accounting for all expenses, including taxes, showcasing operational efficiency and strong financial performance.
Overall, Onto Innovation Inc's profitability ratios have shown consistent improvement, signaling effective cost management, operational efficiency, and healthy financial performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.84% | 6.08% | 13.19% | 9.48% | -1.82% |
| Return on assets (ROA) | 9.53% | 6.34% | 12.44% | 8.63% | 2.11% |
| Return on total capital | 9.72% | 6.68% | 14.83% | 10.97% | -2.11% |
| Return on equity (ROE) | 10.47% | 6.98% | 13.99% | 9.98% | 2.45% |
Onto Innovation Inc's profitability ratios show a mixed performance over the five-year period from 2020 to 2024.
1. Operating return on assets (Operating ROA) increased from -1.82% in 2020 to 13.19% in 2022 before slightly decreasing to 8.84% in 2024. This indicates the company's ability to generate operating profits from its assets improved significantly over the period.
2. Return on assets (ROA) followed a similar trend, rising from 2.11% in 2020 to 12.44% in 2022 and then stabilizing at 9.53% in 2024. This ratio measures the overall profitability of the company relative to its total assets.
3. Return on total capital also demonstrated an increase from -2.11% in 2020 to 14.83% in 2022, followed by a slight decline to 9.72% in 2024. This ratio evaluates how effectively the company is utilizing its total capital to generate profits.
4. Return on equity (ROE) rose from 2.45% in 2020 to 13.99% in 2022, before settling at 10.47% in 2024. ROE measures the return generated for shareholders' equity and indicates the company's ability to generate profits from shareholders' investments.
Overall, Onto Innovation Inc's profitability ratios show a positive trend, with improvements in profitability metrics such as ROA, ROE, and Operating ROA over the five-year period, signaling effective management of assets and capital to generate profits. However, it is important for the company to monitor and maintain these ratios to ensure sustained profitability in the future.