ON Semiconductor Corporation (ON)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.72	2.07	2.63	2.92	2.83
DOH	days	211.66	176.41	138.89	125.08	129.06

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.72
= 211.66

The Days of Inventory on Hand (DOH) for ON Semiconductor Corporation has shown a fluctuating trend over the past five years, as follows:

- As of December 31, 2020, the company held inventory for an average of 129.06 days, indicating the number of days it takes for ON Semiconductor to sell its inventory.
- By the end of December 31, 2021, the DOH had decreased slightly to 125.08 days, suggesting that the company managed its inventory more efficiently compared to the previous year.
- However, by December 31, 2022, the DOH increased to 138.89 days, which may indicate possible challenges in inventory management or a slow-moving inventory turnover.
- The trend continued with a significant rise in DOH to 176.41 days by December 31, 2023, implying a prolonged period for ON Semiconductor to sell its inventory, which could raise concerns about inventory obsolescence or overstocking.
- The most recent data as of December 31, 2024, shows a further increase in DOH to 211.66 days, signifying a substantial extension in the time taken by the company to convert its inventory into sales.

In conclusion, the increasing trend in the Days of Inventory on Hand for ON Semiconductor Corporation over the past five years indicates a potential inefficiency in managing inventory levels, which could impact the company's liquidity, profitability, and overall operational performance.