Onto Innovation Inc (ONTO)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | — | 5,011 | 725 | 191 | 3,666 |
| Interest coverage | — | 47.24 | 215.73 | -139.67 | -1.38 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $116,078K ÷ $—K
= —
Onto Innovation Inc's interest coverage ratio fluctuated significantly over the past five years. In 2023 and 2019, the interest coverage ratios were not available. In 2022, the company had a strong interest coverage ratio of 47.24, indicating that Onto Innovation Inc generated sufficient earnings to cover its interest expenses comfortably. This was a positive sign of the company's ability to meet its debt obligations.
However, in 2021, the interest coverage ratio significantly improved to 215.73, reflecting a substantial increase in the company's earnings relative to its interest expenses. This strong performance suggested a significant improvement in the company's financial health and debt servicing ability.
On the contrary, in 2020, Onto Innovation Inc experienced a negative interest coverage ratio of -139.67. A negative interest coverage ratio indicates that the company's earnings were insufficient to cover its interest expenses, raising concerns about its financial stability and ability to meet debt obligations. Similarly, in 2019, the company also reported a negative interest coverage ratio of -1.38, further indicating financial challenges related to debt servicing.
Overall, the fluctuating trend in Onto Innovation Inc's interest coverage ratio highlights the importance of monitoring the company's earnings and interest expenses to assess its ability to service debt effectively. The significant variations in the interest coverage ratio over the years underscore the need for the company to maintain and improve its financial performance to ensure sustainable debt management.
Peer comparison
Dec 31, 2023