Onto Innovation Inc (ONTO)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 201,670 | 121,159 | 223,334 | 142,349 | 31,025 |
| Total stockholders’ equity | US$ in thousands | 1,925,880 | 1,736,540 | 1,596,430 | 1,426,060 | 1,264,750 |
| ROE | 10.47% | 6.98% | 13.99% | 9.98% | 2.45% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $201,670K ÷ $1,925,880K
= 10.47%
Onto Innovation Inc's return on equity (ROE) has been gradually increasing over the years, from 2.45% as of December 31, 2020, to 10.47% as of December 31, 2024. This upward trend indicates an improvement in the company's ability to generate profit from shareholders' equity.
The ROE of 2.45% in 2020 indicates that for every dollar of shareholders' equity invested, the company generated a return of 2.45%. The significant increase in ROE to 13.99% by December 31, 2022, suggests that Onto Innovation Inc became more efficient in utilizing its equity to generate profits. However, the ROE dropped to 6.98% by December 31, 2023, before recovering to 10.47% in 2024.
Overall, the company's ROE performance indicates a positive trend, with periods of improvement and slight setbacks. It is essential for investors to monitor these fluctuations to assess the company's profitability and efficiency in utilizing its shareholders' equity.
Peer comparison
Dec 31, 2024