Onto Innovation Inc (ONTO)
Interest coverage
| 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 |
| Interest expense (ttm) | US$ in thousands | 6,334 | 5,624 | 7,140 | 7,801 | 5,011 | 2,818 | 1,536 | 1,179 | 1,163 | 1,358 | 1,668 | 2,050 | 2,899 | 3,439 | 3,896 | 4,070 | 3,666 | 3,399 | 3,005 | 2,194 |
| Interest coverage | 18.33 | 26.50 | 24.42 | 26.54 | 47.24 | 79.97 | 136.18 | 159.17 | 134.49 | 50.01 | 20.42 | 2.95 | -9.20 | -3.31 | -3.95 | -4.40 | -1.38 | 7.20 | 9.78 | 18.97 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $116,078K ÷ $6,334K
= 18.33
The interest coverage ratio reflects Onto Innovation Inc's ability to meet its interest obligations from its earnings before interest and taxes. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Looking at the historical trend of Onto Innovation Inc's interest coverage ratio, we can observe significant fluctuations over the periods analyzed. The ratio ranged from negative values reflecting an inability to cover interest expenses in certain quarters to exceptionally high values indicating a strong ability to meet interest payments comfortably.
In recent quarters, particularly in the most recent period, the interest coverage ratio has shown a notable improvement, reaching levels well above 20. This suggests that the company's earnings have been more than sufficient to cover its interest expenses, portraying a healthier financial position.
However, it is important to note the drastic variations in the interest coverage ratio over the periods, indicating potential volatility in the company's earnings and financial performance. Investors and analysts should closely monitor this metric to assess Onto Innovation Inc's ongoing ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023