Onto Innovation Inc (ONTO)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 187,104 | 172,873 | 153,807 | 129,781 | 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 |
| Interest expense (ttm) | US$ in thousands | 0 | 3,167 | 3,167 | 3,167 | 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 |
| Interest coverage | — | 54.59 | 48.57 | 40.98 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $187,104K ÷ $0K
= —
The interest coverage ratio, calculated as earnings before interest and taxes (EBIT) divided by interest expense, provides insight into a company's ability to meet interest obligations. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest expenses.
Onto Innovation Inc's interest coverage ratio was negative in the first quarters of 2020, indicating financial distress and a inability to cover interest payments. However, from March 2021 onwards, the company's interest coverage improved significantly, reflecting a positive trend.
The ratio continued to increase steadily through 2021 and early 2022, indicating a stronger ability to cover interest payments. The peak in December 2021 and subsequent decline in the following quarters suggests fluctuations in the company's profitability and ability to service its debt.
As of December 2024, the interest coverage ratio data is unavailable (indicated by "—"), making it difficult to provide a complete analysis for the most recent period. However, based on the trend observed until that point, Onto Innovation Inc showed improving interest coverage ratios, indicating a better ability to meet its interest obligations over the analyzed period.
Peer comparison
Dec 31, 2024