ON Semiconductor Corporation (ON)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	4,369,500	4,376,400	4,360,600	4,307,500	4,249,000	4,179,800	4,066,800	4,048,700	4,025,500	3,960,300	3,815,100	3,624,500	3,539,200	3,506,600	3,537,100	3,546,600	3,544,300	3,561,600	3,600,100	3,652,300
Inventory	US$ in thousands	2,111,800	2,084,800	1,964,400	1,814,900	1,616,800	1,575,400	1,563,200	1,496,000	1,379,500	1,327,600	1,309,300	1,295,500	1,251,400	1,281,200	1,285,400	1,251,900	1,232,400	1,240,700	1,273,800	1,225,200
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

December 31, 2023 calculation

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

ON Semiconductor Corp.'s inventory turnover has shown a declining trend over the past quarters, from 2.71 in Q1 2022 to 2.07 in Q4 2023. This indicates that the company is taking longer to sell its inventory, which could be a cause for concern as it may lead to increased holding costs and potential obsolescence. A lower inventory turnover may also suggest inefficiencies in the company's supply chain management or issues with demand forecasting. ON Semiconductor Corp. should closely monitor its inventory levels and work towards improving its inventory turnover ratio to optimize its working capital and enhance operational efficiency.