Onto Innovation Inc (ONTO)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.10 | 1.12 | 1.16 | 1.16 | 1.15 |
Onto Innovation Inc's solvency ratios indicate a consistent and strong financial position with zero debt-to-assets, debt-to-capital, and debt-to-equity ratios across the five-year period from 2019 to 2023. This suggests the company has financed its operations primarily through equity rather than debt.
The financial leverage ratio, which measures the proportion of a company's debt to its equity, shows a slight fluctuation but remains relatively stable between 1.10 and 1.16 over the same period. This indicates that the company has maintained a conservative level of leverage and has not significantly increased its reliance on debt to fund its operations.
Overall, Onto Innovation Inc's solvency ratios reflect a low financial risk and a strong ability to cover its debts with its available assets and equity. This conservative approach to financing may provide stability and flexibility for the company in managing its financial obligations and pursuing future growth opportunities.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 47.24 | 215.73 | -139.67 | -1.38 |
The interest coverage ratio for Onto Innovation Inc has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio was not provided. In 2022, it stood at a healthy level of 47.24, indicating the company's ability to comfortably cover its interest expenses with its operating income. The ratio further improved in 2021 to 215.73, reflecting a strong ability to meet interest obligations.
However, the company faced challenges in 2020 with a negative interest coverage ratio of -139.67, indicating that its operating income was insufficient to cover interest expenses during that period. The situation worsened in 2019, with an even lower interest coverage ratio of -1.38, suggesting potential difficulties in meeting interest payments.
Overall, while Onto Innovation Inc has demonstrated strong interest coverage in some years, the negative ratios in 2020 and 2019 highlight periods of financial strain where the company may have faced challenges in meeting its interest obligations using its operating income.