ON Semiconductor Corporation (ON)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.07	2.63	2.92	2.83	2.88
DOH	days	176.41	138.89	125.08	129.06	126.92

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.07
= 176.41

The days of inventory on hand (DOH) for ON Semiconductor Corp. has exhibited a fluctuating trend over the past five years. The DOH increased from 126.92 days in 2019 to 129.06 days in 2020, then decreased to 125.08 days in 2021 before experiencing a noticeable increase to 138.89 days in 2022. The most recent data for 2023 shows a further increase to 176.41 days.

The rising trend in DOH indicates that ON Semiconductor Corp. is taking longer to sell its inventory, potentially signaling inefficiencies in inventory management or a slowdown in sales. This could result in higher carrying costs and the risk of obsolescence. It would be important for the company to closely monitor and address this trend to optimize its inventory levels and improve operational efficiency.