Onto Innovation Inc (ONTO)

Interest coverage ratio is a crucial financial metric that indicates a company's ability to service its interest obligations with its operating income. Onto Innovation Inc's interest coverage ratio has shown significant fluctuations over the years based on the provided data.

As of December 31, 2020, the interest coverage ratio was notably negative at -139.67, indicating that the company's operating income was insufficient to cover its interest expenses. This raises concerns about its financial health and ability to meet debt obligations.

By December 31, 2021, Onto Innovation Inc's interest coverage ratio improved significantly to 215.73, signaling a marked improvement in its ability to cover interest payments with operating income. This indicates a healthier financial position compared to the previous year.

As of December 31, 2022, the interest coverage ratio dropped to 47.24, although still showing that the company's operating income substantially exceeds its interest expenses. However, this decrease might suggest a slight weakening in its ability to cover interest payments compared to the prior year.

The data for December 31, 2023, and December 31, 2024, is not available ("—"), making it difficult to provide an analysis for those years. However, the incomplete data for these years raises uncertainty about Onto Innovation Inc's interest coverage position in those periods.

In conclusion, while Onto Innovation Inc's interest coverage ratio has shown significant fluctuations, a negative ratio in 2020 followed by improvements in 2021 and a slight decline in 2022 suggest varying levels of financial stability and the need for monitoring the company's ability to meet interest obligations in the future.

Peer comparison

Dec 31, 2024