ON Semiconductor Corporation (ON)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.82	8.70	8.84	9.47	9.89	9.41	6.69	7.91	8.33	8.81	8.84	7.99	7.77	7.16	7.90	8.30	7.83	7.84	8.10	8.36
DSO	days	41.37	41.94	41.28	38.55	36.92	38.78	54.53	46.15	43.83	41.45	41.29	45.71	46.95	51.00	46.18	44.00	46.63	46.55	45.04	43.65

December 31, 2023 calculation

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

Days Sales Outstanding (DSO) is a key financial ratio used to measure the average number of days it takes for a company to collect revenue from its sales. A lower DSO indicates that a company is able to collect payments more quickly, which is generally a positive sign of efficient accounts receivable management.

Analyzing the DSO trend for ON Semiconductor Corp. over the past eight quarters reveals some interesting patterns. The DSO has been fluctuating within a relatively narrow range, with values ranging from a low of 36.92 days to a high of 54.53 days. This suggests that the company has been fairly consistent in managing its accounts receivable turnover.

In the most recent quarter, Q4 2023, the DSO stood at 41.37 days, showing a slight decrease compared to the previous quarter. This improvement indicates that the company may have become more effective in collecting payments from its customers in a timely manner.

Furthermore, comparing the DSO in Q4 2023 to the same quarter in the previous year, Q4 2022, we observe a noticeable increase from 36.92 days to 41.37 days. This rise suggests a potential delay in collecting revenue, which could be a cause for concern if not addressed promptly.

Overall, based on the data provided, ON Semiconductor Corp. has managed to maintain a relatively stable DSO level in recent quarters, with a slight improvement in the most recent period. However, the comparison to the previous year highlights the importance of monitoring DSO trends over time to ensure efficient accounts receivable management.