ON Semiconductor Corporation (ON)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	4,369,500	4,249,000	4,025,500	3,539,200	3,544,300
Inventory	US$ in thousands	2,111,800	1,616,800	1,379,500	1,251,400	1,232,400
Inventory turnover		2.07	2.63	2.92	2.83	2.88

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,369,500K ÷ $2,111,800K
= 2.07

ON Semiconductor Corp.'s inventory turnover has shown a declining trend over the past five years, decreasing from 2.88 in 2019 to 2.07 in 2023. This indicates that the company's ability to manage its inventory has weakened over time. Lower inventory turnover may suggest excessive inventory levels or challenges in selling goods efficiently. It is important for ON Semiconductor Corp. to closely monitor and optimize their inventory management practices to improve this ratio and enhance operational efficiency and profitability.