ON Semiconductor Corporation (ON)

Days of inventory on hand (DOH)

		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
Inventory turnover		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	2.88	2.87	2.83	2.98
DOH	days	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	126.92	127.15	129.15	122.44

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 shown a gradual increase over the past eight quarters, reflecting a trend of longer time period for the company to convert its inventory into sales. In the most recent quarter, Q4 2023, the DOH stood at 176.41 days, indicating that the company held its inventory for an average of approximately 176 days before selling it.

Comparing this to previous quarters, there has been a consistent upward trend in the DOH metric, with Q3 2023 showing 173.88 days, Q2 2023 at 164.43 days, and Q1 2023 at 153.79 days. This suggests that ON Semiconductor has been facing challenges in efficiently managing its inventory levels and optimizing its supply chain processes.

When looking at the year-over-year comparison, there has been a noticeable increase in DOH from Q4 2022 (138.89 days) to Q4 2023 (176.41 days), indicating a lengthening of the company's inventory turnover cycle. This trend may raise concerns about potential overstocking issues or slowdowns in sales, leading to potential risks of obsolescence and increased holding costs.

Overall, the rising trend in days of inventory on hand for ON Semiconductor Corp. indicates a need for the company to focus on improving inventory management practices and supply chain efficiency to ensure optimal utilization of resources and maintain a competitive position in the market.