Onto Innovation Inc (ONTO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 116,078 | 149,060 | 174,361 | 207,005 | 236,714 | 225,357 | 209,176 | 187,666 | 156,407 | 67,909 | 34,065 | 6,054 | -26,677 | -11,393 | -15,385 | -17,897 | -5,043 | 24,468 | 29,394 | 41,617 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,736,540 | 1,696,140 | 1,656,710 | 1,624,620 | 1,596,430 | 1,569,370 | 1,527,940 | 1,472,320 | 1,426,060 | 1,373,550 | 1,329,560 | 1,292,310 | 1,264,750 | 1,237,680 | 1,221,210 | 1,225,800 | 1,264,030 | 385,473 | 377,500 | 369,862 |
| Return on total capital | 6.68% | 8.79% | 10.52% | 12.74% | 14.83% | 14.36% | 13.69% | 12.75% | 10.97% | 4.94% | 2.56% | 0.47% | -2.11% | -0.92% | -1.26% | -1.46% | -0.40% | 6.35% | 7.79% | 11.25% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $116,078K ÷ ($—K + $1,736,540K)
= 6.68%
Onto Innovation Inc's return on total capital has shown fluctuations over the past five years. The return on total capital was consistently positive from March 2019 to June 2022, with a peak of 14.83% in December 2022. However, the return on total capital started to decrease thereafter, reaching negative values in the most recent quarters.
The return on total capital dropped from 12.75% in March 2022 to -1.46% in March 2020. This downward trend indicates a potential decrease in efficiency in utilizing the company's total capital to generate profits.
It is important for Onto Innovation Inc to analyze the factors contributing to the declining trend in return on total capital and consider implementing strategies to improve capital efficiency in the upcoming periods.
Peer comparison
Dec 31, 2023