ON Semiconductor Corporation (ON)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	1.72	1.78	1.88	2.02	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
Receivables turnover	6.10	6.89	8.79	9.34	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
Payables turnover	6.73	6.69	6.78	6.51	6.02	4.80	4.81	4.41	4.99	5.28	5.12	5.58	6.34	6.61	6.25	5.99	6.18	6.56	6.76	7.04
Working capital turnover	1.31	1.67	1.84	2.03	2.21	2.32	2.42	2.66	2.27	2.27	2.48	2.57	3.01	2.88	3.33	3.75	3.48	2.59	2.22	2.36

The inventory turnover ratio for ON Semiconductor Corporation has shown a decreasing trend from 2.83 in March 2020 to 1.72 in December 2024. This indicates that the company is taking longer to sell its inventory over the years, which could potentially lead to obsolete or unsold inventory.

On the other hand, the receivables turnover ratio fluctuated over the years, with a peak of 9.89 in December 2022 and a low of 6.10 in December 2024. This suggests that the company is collecting its receivables more efficiently in some periods compared to others.

The payables turnover ratio also varies, reaching a high of 7.04 in March 2020 and a low of 4.41 in March 2023. A lower payables turnover ratio indicates that the company is taking longer to pay its suppliers, which may impact supplier relationships and liquidity.

Furthermore, the working capital turnover ratio fluctuated as well, showing a peak of 3.75 in March 2021 and a low of 1.31 in December 2024. A declining trend in working capital turnover may suggest inefficiencies in utilizing working capital to generate sales.

Overall, these activity ratios provide insights into ON Semiconductor Corporation's operational efficiency and the management of its inventory, receivables, payables, and working capital over the years. Monitoring these ratios can help identify areas for improvement to optimize the company's working capital management and operational performance.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	211.66	204.71	193.95	180.72	176.41	173.88	164.43	153.79	138.89	137.57	140.30	134.87	125.08	122.36	125.26	130.46	129.06	133.36	132.64	128.84
Days of sales outstanding (DSO)	days	59.79	52.96	41.53	39.08	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
Number of days of payables	days	54.24	54.54	53.85	56.04	60.61	76.00	75.96	82.72	73.20	69.14	71.24	65.39	57.59	55.23	58.38	60.93	59.08	55.60	53.96	51.86

ON Semiconductor Corporation's activity ratios provide insight into how efficiently the company manages its working capital and inventory turnover.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increasing pattern over the years, indicating that ON Semiconductor is holding inventory for a longer period. This could suggest issues with inventory management, such as overstocking or slow-moving inventory.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect revenue after making a sale. The trend in DSO shows fluctuations, with some periods showing a decrease and others an increase. A higher DSO could imply that ON Semiconductor is taking longer to collect payments from customers, which may lead to cash flow challenges.

3. Number of Days of Payables:
- This ratio reflects the average number of days it takes for the company to pay its suppliers. The trend in payables days also fluctuates, but generally shows an increasing pattern in recent years. This could indicate that ON Semiconductor is taking longer to pay its suppliers, potentially to manage its cash flow or to take advantage of credit terms.

Overall, a high DOH, DSO, and payables days may indicate inefficiencies in ON Semiconductor's working capital management. Monitoring and improving these ratios can help the company optimize its cash flow and operating efficiency.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	1.62	1.68	1.78	1.86	1.88	1.93	2.09	2.26	2.41	2.92	2.81	2.81	2.67	2.61	2.41	2.19	2.09	2.07	2.06	2.10
Total asset turnover	0.50	0.53	0.57	0.60	0.62	0.63	0.65	0.68	0.70	0.73	0.71	0.71	0.70	0.71	0.69	0.63	0.61	0.56	0.55	0.57

Long-term activity ratios provide insights into how efficiently a company is managing its assets over an extended period. Let's analyze ON Semiconductor Corporation's long-term activity ratios:

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate sales. ON Semiconductor's fixed asset turnover ratio has been relatively stable over the years, with a gradual increase from 2.10 in March 2020 to a peak of 2.92 in September 30, 2022. However, the ratio started to decline afterward, reaching 1.62 by December 31, 2024. This downward trend in fixed asset turnover indicates a potential decrease in efficiency in utilizing fixed assets to generate revenue.

2. Total Asset Turnover: The total asset turnover ratio reflects how efficiently a company is using its total assets to generate revenue. ON Semiconductor's total asset turnover ratio has shown fluctuation over the years, ranging from 0.50 in December 31, 2024, to a high of 0.73 in September 30, 2022. The ratio generally increased from March 2020 to September 2022 before declining in the following periods. The decreasing trend in total asset turnover suggests that the company may be becoming less efficient in generating sales relative to its total asset base.

In summary, while ON Semiconductor Corporation has shown fluctuations in its long-term activity ratios, it is important for stakeholders to monitor these trends closely to assess the company's asset management efficiency and identify any areas for improvement.