Onto Innovation Inc (ONTO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 116,078 | 236,714 | 156,407 | -26,677 | -5,043 |
| Total assets | US$ in thousands | 1,909,710 | 1,794,860 | 1,649,810 | 1,468,170 | 1,448,580 |
| Operating ROA | 6.08% | 13.19% | 9.48% | -1.82% | -0.35% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $116,078K ÷ $1,909,710K
= 6.08%
Onto Innovation Inc's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. The company's operating ROA stood at 6.08% at the end of December 2023, showing a decrease from the prior year's figure of 13.19%. This decline indicates a potential decrease in operating efficiency or profitability relative to the total assets employed in the business.
In comparison to the performance in 2021 and 2020, where the operating ROA was 9.48% and -1.82%, respectively, the current operating ROA of 6.08% suggests a mixed performance. The negative operating ROA in 2020 indicates that the company's operating income was insufficient to cover the assets utilized, potentially due to operational inefficiencies or financial distress during that period.
Looking back to 2019, Onto Innovation Inc also recorded a negative operating ROA of -0.35%, which was slightly better than in 2020 but still indicates challenges in generating operating income from its assets at that time.
Overall, the trend in Onto Innovation Inc's operating ROA highlights the importance of closely monitoring and managing operational performance and asset utilization efficiency to ensure sustainable profitability and value creation for the company and its stakeholders.
Peer comparison
Dec 31, 2023