Onto Innovation Inc (ONTO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 116,078 | 236,714 | 156,407 | -26,677 | -5,043 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,736,540 | 1,596,430 | 1,426,060 | 1,264,750 | 1,264,030 |
| Return on total capital | 6.68% | 14.83% | 10.97% | -2.11% | -0.40% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $116,078K ÷ ($—K + $1,736,540K)
= 6.68%
Onto Innovation Inc's return on total capital has exhibited variability over the past five years. In 2023, the return on total capital stood at 6.68%, showing a decrease from the prior year's figure of 14.83% in 2022. However, it is noteworthy that the return on total capital in 2023 still exceeds the returns reported in 2021 and 2020, which were 10.97% and -2.11%, respectively.
The negative return on total capital in 2020 indicates a period of underperformance where the company's capital utilization did not yield positive returns. However, Onto Innovation Inc managed to improve its return on total capital in the subsequent years.
Furthermore, the company's return on total capital has been on an upward trajectory from a negative -0.40% in 2019 to a positive 6.68% in 2023, signifying a recovery and potentially improving efficiency in capital allocation and utilization.
Overall, Onto Innovation Inc's return on total capital trend suggests variability, with recent years showing improvement in capital utilization efficiency compared to the earlier periods reviewed.
Peer comparison
Dec 31, 2023