ON Semiconductor Corporation (ON)
Payables 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 |
| Payables | US$ in thousands | 725,600 | 852,100 | 635,100 | 572,900 | 543,600 |
| Payables turnover | 6.02 | 4.99 | 6.34 | 6.18 | 6.52 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,369,500K ÷ $725,600K
= 6.02
Payables turnover measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its suppliers in a given period.
ON Semiconductor Corp.'s payables turnover has fluctuated over the past five years, ranging from 4.99 to 6.52. The trend indicates a moderate level of consistency in managing its payables.
In 2023, the payables turnover ratio improved to 6.02 compared to the previous year, suggesting that the company is paying off its suppliers more frequently. This could indicate effective inventory management, good supplier relationships, or improved cash flow management.
Overall, ON Semiconductor Corp.'s payables turnover reflects a stable and efficient management of its payables over the years, with fluctuations likely due to changes in the company's operational and financial strategies.
Peer comparison
Dec 31, 2023