ON Semiconductor Corporation (ON)

Days of inventory on hand (DOH)

		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
Inventory turnover		1.72	1.78	1.88	2.02	2.07	2.10	2.22	2.37	2.63	2.65	2.60	2.71	2.92	2.98	2.91	2.80	2.83	2.74	2.75	2.83
DOH	days	211.66	204.71	193.95	180.72	176.41	173.88	164.43	153.79	138.89	137.57	140.30	134.87	125.08	122.36	125.26	130.46	129.06	133.36	132.64	128.84

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 fluctuations over the evaluated period. From March 31, 2020, to December 31, 2024, the DOH has generally increased, indicating that the company is holding inventory for a longer period.

Initially, the DOH ranged from around 128 to 135 days, with a slight upward trend. However, a more significant increase was observed from June 30, 2023, onwards, where the DOH surpassed 150 days. This suggests potential inefficiencies in managing inventory levels or potential issues with demand forecasting.

By December 31, 2024, the DOH reached 211.66 days, reflecting that ON Semiconductor Corporation may be holding excessive inventory levels relative to its sales volume. High DOH can tie up working capital and indicate potential challenges in maintaining a streamlined supply chain.

It would be advisable for the company to reassess its inventory management strategies, optimize procurement processes, and enhance demand forecasting techniques to improve operational efficiency and reduce the excessive holding of inventory.