ON Semiconductor Corporation (ON)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		8.82	9.89	8.33	7.77	7.83
DSO	days	41.37	36.92	43.83	46.95	46.63

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.82
= 41.37

The Days of Sales Outstanding (DSO) ratio for ON Semiconductor Corp. has shown fluctuation over the past five years. In 2023, the DSO decreased to 41.37 days from 36.92 days in 2022. This indicates that the company's accounts receivable turnover has improved, meaning it is collecting its sales revenue more quickly.

Comparing 2023 to 2021, the DSO decreased from 43.83 days to 41.37 days, reflecting a positive trend in managing accounts receivable. Similarly, compared to 2020 and 2019, where the DSO was 46.95 days and 46.63 days respectively, the decrease in 2023 indicates a more efficient collection process.

Overall, the declining trend in DSO for ON Semiconductor Corp. suggests that the company has been successful in managing its accounts receivable and converting sales into cash more promptly in recent years. This improvement may indicate effective credit policies, better customer payment terms, or enhanced collection efforts, all of which contribute to improved working capital management and potential financial stability.