ON Semiconductor Corporation (ON)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		6.10	8.82	9.89	8.33	7.77
DSO	days	59.79	41.37	36.92	43.83	46.95

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.10
= 59.79

The days of sales outstanding (DSO) for ON Semiconductor Corporation have shown some fluctuations over the past five years. The DSO decreased from 46.95 days as of December 31, 2020, to 43.83 days as of December 31, 2021, indicating an improvement in collecting receivables. This downward trend continued as the DSO dropped further to 36.92 days by December 31, 2022, suggesting efficient management of accounts receivable.

However, there was a slight increase in the DSO to 41.37 days by December 31, 2023, which may indicate a potential slowdown in receivables collection. The trend reversed significantly in the following year, with the DSO rising to 59.79 days as of December 31, 2024, signaling a potential challenge in collecting sales revenue efficiently.

Overall, ON Semiconductor Corporation should closely monitor its accounts receivable management to ensure a healthy balance between efficient collections and maintaining positive relationships with customers.