Onto Innovation Inc (ONTO)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.10 | 1.12 | 1.16 | 1.16 |
Onto Innovation Inc's solvency ratios reflect a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 from 2020 to 2024, indicating the company's ability to fund its operations primarily through equity and retained earnings rather than debt.
Furthermore, the Financial leverage ratio has shown a decreasing trend from 1.16 in 2020 to 1.10 in 2024. This suggests that Onto Innovation Inc has been successful in reducing its reliance on debt to support its business activities, resulting in a more stable financial structure and lower financial risk.
Overall, the solvency ratios indicate that the company is in a strong position to meet its financial obligations and withstand economic challenges, demonstrating prudent financial management and a conservative approach to leverage.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 47.24 | 215.73 | -139.67 |
Interest coverage is a financial ratio that measures a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that a company is more capable of servicing its debt obligations.
Analyzing the interest coverage of Onto Innovation Inc over the years, we observe the following trends:
1. December 31, 2020: The interest coverage ratio was reported at -139.67, indicating that the company's operating income was insufficient to cover its interest expenses during this period. A negative ratio implies significant financial stress.
2. December 31, 2021: The interest coverage ratio significantly improved to 215.73, suggesting a strong ability to meet interest payments. This substantial increase is a positive sign of the company's improving financial health.
3. December 31, 2022: The interest coverage ratio decreased to 47.24 from the previous year but still remains at a relatively healthy level. A ratio above 1 indicates that the company's operating income is more than sufficient to cover its interest obligations.
4. December 31, 2023 and December 31, 2024: The data shows "—", indicating that the interest coverage ratios for these years are not available. It is important for investors and stakeholders to seek further information or clarification regarding the financial stability of the company during these periods.
In conclusion, Onto Innovation Inc's interest coverage has shown fluctuations over the years, with a notable improvement in 2021 despite a slight decrease in 2022. It is essential for investors to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage financial risks effectively.